Bailed out banks acting up

Earlier this month a number of MPs expressed their concern over how many of the leading UK banks that have been bailed out with the use of taxpayers’ money are acting terribly in the current recession. Read more

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Banks “mugging” customers with charges

Banks have been accused of “mugging” their own customers through penalty charges, according to a Liberal Democrat MP.

Matthew Taylor voiced his opinions during a debate on the subject of bank charges which was held in parliament.

Mr Taylor said that the charges were regularly hitting the vulnerable hardest, with single parents and those on benefits the most likely to be charged.

“It is the biggest bank robbery in Britain and it involves the banks robbing their own customers, especially their poorest customers,” said the MP.

The Liberal Democrat’s social exclusion spokesman went on to say that the charges are illegal and that banks are avoiding the law by never allowing a case against them to go to court.

Mr Taylor said that the banks would rather settle out of court so that a definitive ruling on whether the case is illegal or not cannot be reached.

“Every time court action is threatened, the banks refuse to defend themselves. The only possible reason has been that they know they will lose,” he added.

“I believe they are clearly illegal and if there was any doubt about it the banks would have the courage to fight a single case in the courts – which they do not.

“Meanwhile, frankly the OFT [Office of Fair Trading] has been limp, the banks are dodging the courts and the government is turning a blind eye,” he concluded.

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