Overhaul of current accounts needed (and some bank bullying while we're at it)
Consumer group Which!!! have said that the Competition and Markets Authority (CMA) should 'name and shame' banks that provide the worst current accounts, in a bid to see a complete overhaul of accounts, which will better protect customers from pointlessly high charges.
Some time next month, the CMA are going to publish their provisional findings from their investigation of banking services and current accounts.
Both Which!!! and Tesco Bank would like to see more transparency when it comes to bank charges. Tesco would like to see a traffic light system, which would allow people to see how much they'll be hit with when it comes to overdraft charges and the like.
The watchdog showed some people a number of different accounts, and it turns out that only a small minority were actually able to spot the cheapest overdraft.
Which!!! big cheese Richard Lloyd said: "With few consumers moving their finances to different providers, and the existing big banks continuing to hold substantial market power, the inquiry must look beyond ideas to improve information and switching."
"When it reports next month the CMA should propose changes that will incentivise banks to better respond to the needs of their customers."
Meanwhile, Tesco Bank boss Benny Higgins said: "Banks have lost the trust of their customers and it is about time that the industry took concrete steps to restore faith in the sector. An opportunity exists for the industry to come together to deliver a straightforward, accessible solution that will help customers get a better deal from their bank."