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15/05/2007
NI customers should pay 'fewer bank charges'
Banks in Northern Ireland must make improvements to ensure their customers pay fewer bank charges, a report has stated.
The Competition Commission (CC) found that competition was limited by banks' “unduly complex” charging structures and practises and their failure to explain them and customers’ reluctance to switch to another bank.
The report also said the four major banks, which control 75% of the current account market, must now make major improvements to their personal current account (PCA) services in Northern Ireland.
These include providing better and clear information to help them understand banks PCA services, charges and interest rates; giving customers at least 14 days notice before deducting charges and interest from their accounts; and introducing improvements to the switching process to ensure customers who switch banks do not incur costs doing so.
Christopher Clarke, Chairman of the Inquiry Group and CC Deputy Chairman, said: “Our measures will ensure a better deal for personal current account customers in Northern Ireland.
He also said by enabling customers to understand the costs of operating their PCAS they would be “much better placed” to make decisions.
“Customers will also be in a much better position to choose which PCA and which bank best suits their own personal circumstances. An increase in switching bank accounts, or an increase in the possibility of doing so, will incentivize banks to provide better terms and clearer conditions. Such an increase in competition can only benefit customers,” he said.
The Ulster Bank also responded to the report, saying it maintained that the personal current account market in the province, was “very competitive”.
They said: "We agree with the Competition Commission that customers must be encouraged to seek out the best PCA to match their own personal needs and the Ulster Bank remains committed to providing clear information to help them do so."
(JM/KMcA)
The Competition Commission (CC) found that competition was limited by banks' “unduly complex” charging structures and practises and their failure to explain them and customers’ reluctance to switch to another bank.
The report also said the four major banks, which control 75% of the current account market, must now make major improvements to their personal current account (PCA) services in Northern Ireland.
These include providing better and clear information to help them understand banks PCA services, charges and interest rates; giving customers at least 14 days notice before deducting charges and interest from their accounts; and introducing improvements to the switching process to ensure customers who switch banks do not incur costs doing so.
Christopher Clarke, Chairman of the Inquiry Group and CC Deputy Chairman, said: “Our measures will ensure a better deal for personal current account customers in Northern Ireland.
He also said by enabling customers to understand the costs of operating their PCAS they would be “much better placed” to make decisions.
“Customers will also be in a much better position to choose which PCA and which bank best suits their own personal circumstances. An increase in switching bank accounts, or an increase in the possibility of doing so, will incentivize banks to provide better terms and clearer conditions. Such an increase in competition can only benefit customers,” he said.
The Ulster Bank also responded to the report, saying it maintained that the personal current account market in the province, was “very competitive”.
They said: "We agree with the Competition Commission that customers must be encouraged to seek out the best PCA to match their own personal needs and the Ulster Bank remains committed to providing clear information to help them do so."
(JM/KMcA)
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
