Good news for bank customers due to new measures

Banks have been at the centre of a great deal of controversy over the past couple of years for a range of reasons, ranging from the controversial bank charges on unauthorised overdrafts – which is still being dealt with by the courts – to security breaches, unfair treatment of customers, and lack of clarity when it comes to terms and conditions.

However, it has been revealed recently that the banking industry has agreed to bring in some new measures following pressure from the watchdog the Office of Fair Trading.

A couple of damning reports were recently released, with the data in these reports showing just how unclear banks were when it came to charged and account information. As part of the new measures the banking industry has now agreed that it will provide greater clarification with regards to charges for consumers, and will provide an annual summary of charges.

There are also a number of other measures that will form part of the change, and all of these are set to be implemented by 2011.

Many people fail to change their bank accounts even if they are not really happy with their existing bank and this is often because they feel that it is too stressful and time consuming to switch all of their payments and direct debits from the old account to the new one. As part of the new measures banks are also going to be making this process easier, thus making it easier for consumes who wish to switch their bank account to do so.

The new measures should help to improve consumers’ confidence levels, and will make it easier for them to have more choice with regards to which bank account they choose. One official from the OFT said: “As consumers become more aware of the costs of their account and more confident in switching as a means to get better value. Banks will need to offer more competitive and innovative products and services to attract as well as retain customers.”

The Consumer Affairs Minister Kevin Brennan said that the new measures would prove to be very good news for consumers, as it would allow them to enjoy better value and service from their banks and if they were not getting this they would be able to switch more easily.

He said: “These new guarantees are a step in the right direction and represent a real boost for consumers. People deserve an upfront and clear service from their bank and these measures are an important part in delivering that.”

The British Bankers Association also released a statement with regards to the new measures, stating: “The industry tries to make moving from one bank to another easier for customers by arranging for regular payments to come from the new account and banks compensate customers if the switching process goes wrong where the bank is at fault. However, consumer research suggests the reason people stay with their bank is not because they find moving bank difficult but that they are happy with the service they are getting.”