Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Uncompetitive, Dishonest: Mps' Verdict On Uk Banks

Recommended Posts

http://www.independent.co.uk/news/business/news/uncompetitive-dishonest-mps-verdict-on-uk-banks-2260091.html

Britain's biggest banks get away with poor service, confusing products and dishonest claims about free banking because they have a stranglehold on the market, a report by MPs says.

The House of Commons Treasury Committee poured scorn on banks' claims that they offer free banking and that the benefits of their size means lower prices.

All customers pay for their banking and the most vulnerable pay the most, while benefits of being a big bank are not passed to customers, the cross-party committee said in a unanimous report on the retail banking market.

Banks that are "too big to fail" enjoy unfair advantages over smaller challengers in a market that is less competitive after the financial crisis, the report said. The MPs rejected arguments put to them by some of Britain's most powerful bankers, including Bob Diamond, the chief executive of Barclays, and Eric Daniels, who headed Lloyds until earlier this year. "It has many of the characteristics of an oligopolistic market. They [the bank bosses] certainly understand it very well," said Andrew Tyrie, chairman of the committee. "It is natural enough that banks should fight their corner on behalf of their shareholders but it is even more important that those trying to protect the consumer and get the best deal for the public challenge them and that is what we have done."

On "free" current accounts, the MPs argued customers in credit were really paying because they were missing out on higher interest elsewhere while more vulnerable customers paid charges that subsidise those in credit.

I'm betting nothing changes it's 10 years or more since the last report and nothing altered.

As for the poor paying more, it may sound harsh but I know a bank manager who repeatedly kept trying to explain to their customers it was costing them a fortune in overdraft charges etc.... and if they did x and y they would stop getting charged and save money. Needless to say that didn't happen.

I think it's more the fiscally illiterate who are subsiding the free banking, which is different to the poor doing it.

Share this post


Link to post
Share on other sites

How can banking be competitive in the UK?

There is only one bank, the rest are franchise banks. Any percieved competition is fake and going through the motions.

Share this post


Link to post
Share on other sites

It's good to see them discussing the question of "free" banking but how much does the lax implementation of the bailouts cost every customer and every taxpayer and the whole issue is hardly ever mentioned by them.

As for Mr Robert (no remorse for collapsing the UK economy and we're off to America now) Diamond.

Share this post


Link to post
Share on other sites

What I want to know is why are my savings being eroded whilst the banks make billions in profit.

Can we do anything to address the problem and why do we stand for this.

:angry:

Share this post


Link to post
Share on other sites

What I want to know is why are my savings being eroded whilst the banks make billions in profit.

Can we do anything to address the problem and why do we stand for this.

:angry:

Because in order to get your "savings" you need the banksters. understandably they are just keeping what they steal, rather than passing it on to you.

That's what happens when you rely on known thieves to keep your assets "safe."

Share this post


Link to post
Share on other sites

I know but maybe its time to do something about this.

What about all the pensioners for example who rely on interest to maintain a resonable standard of living.

We need to challenge the banks now.

:angry:

Share this post


Link to post
Share on other sites

I know but maybe its time to do something about this.

What about all the pensioners for example who rely on interest to maintain a resonable standard of living.

We need to challenge the banks now.

:angry:

actually, we need to challenge the criminals that keep bailing them out...the market has said no.

Share this post


Link to post
Share on other sites

What I want to know is why are my savings being eroded whilst the banks make billions in profit.

Can we do anything to address the problem and why do we stand for this.

:angry:

Your wealth has gone because you made the mistake of lending all your money to banks who have lost it all. Rather than it vanish in one day in 2008 it's just going a little at a time via inflation, so you aren't supposed to notice.

Share this post


Link to post
Share on other sites

Well collectively why can't we start it from here

There are some really bright people on here and im sure they would relish a challenge

:)

There is no need to organise anything, if you want to take the power away from the banks then stop using them, take out your savings and convert them into gold or silver or property (cash buy, no mortgage).

Only keep a current account with a mutual building society for your salary payments and keep in it only the minimum necessary to pay your bills.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.