Urgent action is needed to ensure bank customers are treated fairly

22 December 2009

Following this morning’s announcement by the OFT, the Consumer Panel believes the uncertainty around unauthorised overdraft charges and the issues of unfairness with the current account market needs to be resolved as a matter of urgency.

Adam Phillips, Chairman of the Financial Services Consumer Panel said:

"There can be no justification for such high unauthorised overdraft charges hitting consumers when they are most vulnerable. If banks are serious about treating customers fairly, they should accept that it’s not fair to fund their retail banking operations through high charges to one section of their customers. 

 “The OFT, FSA and the banks must now engage in urgent discussions, not only to reach a clear resolution on bank charges, but also to ensure that the current account market is fair for all bank customers. These issues need to be resolved in weeks, not months.  The Consumer Panel stands ready to participate in any discussions to ensure the consumer voice is represented effectively and to get fair treatment for consumers.”

The Panel is also concerned with the lack of clear advice for those customers challenging bank charges. For customers in financial difficulties, banks must deal with them sympathetically and in line with the industry’s own lending code. All customers still have the right to refer their complaint on to the Financial Ombudsman Service.

Rather than using claims management firms who make money from handling complaints, consumers can get free advice from a range of organisations including: local authority money advisors, law centres, Citizen Advice Bureaux, and other free money advice agencies.

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.

3. There are currently twelve members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Adam Phillips (Chairman)
   Kay Blair
   Stephen Crampton
   Caroline Gardner
   Bill Martin
   Claire Whyley

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart
   Mike Dailly