BBA welcomes financial inclusion measures

According to the BBA, a net total of 2.11 million post office-accessible accounts have been opened since April 2003, creating debt management opportunities for consumers.

Ian Mullen, chief executive of the BBA, commented: “We approach the chancellor’s pre-budget report, confident that the provision of basic bank accounts will be recognised as a serious contribution to the shared goal with government of improving financial inclusion.”

However, the news that more basic accounts have been created arrives as first direct becomes the first mainstream British bank to start charging customers for use of its current accounts unless they meet certain criteria.

This decision contrasts with the BBA saying that it was encouraging more bank accounts to be opened and thus help with debt management plans.

David Mond, CEO of ClearDebt, said of the move: “This decision adds further challenges to prudent financial management, which given the current climate cannot be a good thing for society, or the banks.”