The lack of transparency in the working practices of financial institutions has been criticised by consumer champion Which? as it does not allow customers the opportunity to compare accounts and choose those most suitable – which could perhaps put them at risk of paying more interest and sliding into debt.
Doug Taylor, personal finance campaigner with the organisation, noted that it is no wonder people “end up staying with the devil they know”, with UK banks being shown in a report from the European Commission to be “below average for price transparency on current accounts”.
He went on to add that it is time British banks stop taking the public for granted and start setting their affairs in order, beginning with taking positive action on overdraft charges.
The European Commission’s survey was initiated in order to address three areas where consumers are facing difficulties – switching of accounts, the transparency of bank fees and the issues of pre-contractual information and advice.
By Sarah Adie