EU commissioner issues wake-up call for retail banks

by Gill Montia

Story link: EU commissioner issues wake-up call for retail banks

A report from the EU consumer commissioner has accused retail banks of letting down their customers.

Among a number of misdemeanours, banks have been called to account for producing information for consumers that is incomprehensible and having fee structures that are opaque, rather than transparent.

According to Commissioner Meglena Kuneva, only 9% of current account customers switched banks in 2007 and 2008, compared with 25% of car insurance customers.

Her report therefore advocates the setting up of an EU-wide price comparison website which should encourage sharper competition.

Ms Kuneva sums up: “There is widespread evidence that basic consumer principles are being violated with problems from complex pricing to hidden charges and information that is unclear and incomplete.”

The study backing the findings compared the terms offered by 224 banks across the EU and the report urges member countries to use existing consumer law to encourage retail banks to put their houses in order.