EU Report into Banking Fees

[EXC]

The European Commision Report into Banking Fees which criticises ''opaque bank fee charges''.

Nice line in it which says ''For instance in the UK, consumers found a consumer credit agreement which required 55 minutes to read is not suitable for information purposes. In general, anything of more than 1-2 pages would be perceived as too long and difficult to understand''.

Report: http://ec.europa.eu/consumers/rights/fin_serv_en.htm

[Amethyst]

Re: EU Report into Banking Fees

http://www.myfinances.co.uk/news/bank-accounts/news/bank-accounts/banking-practices-and-conduct/bank-fees-incomprehensible-and-violating-customers-rights-$1329010.htm

Bank fees 'incomprehensible' and 'violating customers' rights'

Wednesday, 23 Sep 2009 08:30



Banks are violating their customers' rights with incomprehensible fees, claimed a European commissioner today.

Consumer protection commissioner Meglena Kuneva said: "Retail bankers are letting consumers down.

"There is widespread evidence that basic consumer principles are being violated."

She added: "Banks need to put their house in order with a culture change in the way they treat customers."

Ms Kuneva was speaking at the launch of report into retail banking that found at 66 per cent of banks the fees were so unclear that experts compiling the report needed additional explanatory contacts with the bank to find the real costs of an account.

The report hit at UK banks where credit agreement required 55 minutes to read fully.

It found "evidence shows that in many cases the information [in pre-contract agreements] is incomprehensible, insufficient and presented in too many different ways making it difficult for consumers to compare different offers and to obtain the best deal".

UK bank customers may complain about the cost of overdraft fees and other charges – but across Europe banks are hitting their customers hard.

The overall prices of accounts ranged from £228 in Italy to as low as £24 in Bulgaria.

Intensive bank users in Italy – paying to have a bank account, to withdraw funds at any cash machine as well as overdraft fees – can pay as much as £750 a year.

UK banks, however, did not walk away from the report blameless. British banks were found to have below average price transparency.

Which? personal finance campaigner Doug Taylor said: "The lack of transparency around financial products has been evident in the UK for a long time.

"It’s no wonder customers can’t compare accounts, and end up staying with the devil they know."

He added UK banks earn on average £152 from each account through default fee charges and foregone interest.

"British banks should stop taking their customers for granted, and put their house in order," he said.