Bank customer welfare “continues to take a backseat”
Banks are putting the welfare of their customers on the “backseat”, according to one financial expert.
Nick White, director of financial services at uSwitch, issued the comment following research that banks are charging “rocketing rates” on cash withdrawals.
The study found that providers are levying about £41 million in interest charges for those withdrawing cash through their credit cards. It also found that the average APR on cash withdrawals was 20.83 per cent in May 2005 in comparison with the current figure of 27.06 per cent.
Mr White said: “Consumers could be forgiven for thinking that they are being treated as the banking industry’s personal ATM. It’s easy to see why the major banks continue to announce record profits, which this year alone totalled in excess of £40 billion, when the welfare of their customers continues to take a backseat to shareholder profits.”
Mr White continued that navigating rates on credit cards “can be confusing even for a Cambridge academic”, leaving the average consumer with little chance of success. He has hence called for greater transparency on charges in the credit card market.
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