Bank charges ruling has damaged trust in banks Go compare with our comparison table

Bank charges ruling has damaged trust in banks

26 January 2010 / by Andy Davies

Brits have lost faith in the banking system following the bank charges test case ruling, money.co.uk has claimed, as less than one in 10 Brits say they 'completely trust' their bank.

According to new research by the comparison website, 25 per cent of Brits do not trust their banks at all, while only seven per cent of the population believe that their bank will treat them fairly.

Meanwhile, only 15 per cent of consumers believe that their bank is doing enough to help prevent them from inadvertently running up unauthorised overdraft charges.

However, money.co.uk's research also revealed that just 15 per cent of consumers believe that switching banks would make a real difference to the way penalty charges are applied to their accounts.

Commenting, Chris Morling, managing director at money.co.uk said that the Supreme Court's ruling on bank charges and the banking crisis has "deeply affected our relationship with banks".

"The erosion of trust should be a real concern and the perceived lack of an alternative even more so. Based on these findings, I believe the banks have much work to do if they are to win back our trust – particularly when it comes to individual treatment and ‘fair play'.

"In the case of Northern Rock, we have already seen what can happen when a bank's customers completely lose faith in it," he said.

Mr Morling continued by suggesting that for many Brits, the issue is not about charges per se, but with the banks' "laissez-faire attitude" to allowing customers exceed their overdrafts in the first place.

He added: "The reality is that, in a world where money can be spent in a huge variety of ways, banking systems and policies have failed to keep pace – and customers are getting a raw deal as a result."

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