Consumers are growing frustrated at the lack of justice and regulatory presence from the government as PPI mis selling and unfair bank charges continue to plague the United Kingdom according to consumer group Which?. However, the Financial Consumer Protection Minister has yet to indicate a clear date for financial products and services.
According to Which?’s research, UK’s big banks, including the UK’s big four, have gained negative scores for customer satisfaction. According to FCA’s research from 2010, complaints for mortgages have risen by 50% and complaints for insurance 23%
Which? also analysed information from the Financial Ombudsman Service and found out that 80,000 complaints were about banking and credit cards with about 17% of the charges.
Poor value accounts were also part of the problem. According to Which? about £4.3 billion a year is lost to poor value accounts.
Majority of the public, about 75 per cent, believe that banks and the government aren’t doing anything to help people get a good deal as the former are focused on increasing profits and sales.
Which? intends the review to include the following:
- The fees and charges consumers face, which are often not displayed clearly or in a way that makes them easy to compare.
• How firms treat consumers, including their sales practices and how they handle complaints.
• Competition and innovation in the cash savings and payday loan markets, to ensure consumers are a getting a better deal following the recent investigations by the regulators.
• Consumer rights in the mortgage market, including age discrimination and mortgage prisoners, in light of the recent changes to lending rules.