Independent Banking Advisory Service 

UK Bank Customer's News 2006

Banking industry is 'opened up' by BBC Whistleblower interview - read what this person thinks about the banking industry and watch video of program from this link. Can you trust the UK Financial Services industry?

First Flaws in Chip and Pin emerge - a major bank conceded that serious flaws in the new chip and PIN system has opened it up to fraud. Lloyds TSB admitted a surge in thefts by gangs who clone debit and credit cards then plunder accounts at ATMs overseas. The crooks not only steal the card details, but also the four digit PIN codes which have replaced signatures to authorise purchases. Hundreds of victims had their cards cloned when paying for fuel at Shell petrol stations. Reported in the Daily Mail 11/05/2006

Petrol giant Shell suspends chip-and-pin payments in 600 petrol stations after more than £1m was siphoned out of customers' accounts - "These Pin pads are supposed to be tamper resistant, they are supposed to shut down, so that has obviously failed," said APACS spokesperson Sandra Quinn. A Shell spokeswoman said: "Shell's chip-and-pin solution is fully accredited and complies with all relevant industry standards". BP is also looking into card fraud at petrol stations in Worcestershire. - Reported in BBC TV News 06/05/2006

Current Account switching is working - The evidence shows that by switching in very large numbers consumers have now forced banks to recognize that branch networks are important if they want to retain their customers and indeed market share. The message is don't stand for shoddy bank service - if you do not get good service then take your business elsewhere. Banks need customers but they need to 'wake up' and recognize what 'consumer power' can do and how quickly they can lose market share. - 16/03/2006

Bank Base Rate remains at 4.5% - Low base rates continue and looking backwards in time the base rate has remained below 4.75% since 2002. So why are many bank customers paying 5% over base (or much more) for their overdraft or loans? Do they check what is being agreed and enjoy giving banks a 100% plus margin of profit on their borrowings? Do the majority of bank customers enjoy paying 'over the odds' for a service or services that can be bought elsewhere at often much lower cost? Or is it the fear of the unknown? 

Better 'the devil you know' or they're all the same are comments that often comes up in conversation with bank customers who have remained loyal to their bank despite shoddy and expensive service which really tells them they should be looking elsewhere. Those that have switched report good things back to us. 'It went better than expected' - 'quicker than we thought' - 'even the standing orders weren't a problem'. It seems to prove that some banks do really want new customers but also that the big banks aren't interested enough to want to hold onto their existing customers. You pay your money and you make your choice! - 08/03/2006

Bank Profits a Huge Concern - IBAS spokesman Eddy Weatherill said: "There has been a plundering of the consumer by banks. The industry is under-policed."  IBAS is calling on the Chancellor Gordon Brown to impose a windfall tax on the banks but remains pessimistic. "The Government has resisted every opportunity to tax the industry so we can assume it is not going to happen." - Reported in This is Dorset, icLiverpool, Manchester Evening News, Evening Times, Daily Mail, 07/03/2006 and 8/03/2006

Halifax home repossession suicide - yet another life lost to mortgage arrears and repossession threats. £5,000 mortgage arrears cost another life whilst banks again declare maximum bank profits. Visit  Mortgage shortfall debt resolution if you have been repossessed and now have a further home at risk. - 16/02/2006

IBAS comment - This is a good 'sign' for all bank customers and shows that 'switching' banks is gaining strength. This may 'encourage' the big banks to look more closely at their charging rates and saving rates as well as their poor customer services.

IBAS research in this area shows that most people are unhappy with their banking arrangements and they will complain bitterly about their personal experiences but they are often just too lazy to make buying comparisons on bank products which are necessary to evaluate interest rates for debit and credit interest and other services. 

There are very competitive products on offer now and it is much easier to switch banks. If you are paying for a bank product which provides product or services you don't need or just don't want then look more closely at what is on offer from the smaller banks and also online. Switching has proved to be a better deal for those prepared to actually do something positive in order to save money and earn more from their savings.