Banks – unfair and aggressive

Tuesday, March 09, 2010

Scottish banks have been condemned for their aggressive tactics towards customers who have fallen into debt – some of their most vulnerable customers.

Members of the Scottish Affairs Select Committee said they had heard from their own constituents of "terrible stress and anxiety at the repeated, often automated, calls from unsympathetic bank call centres".

The committee's report on banking in Scotland quotes silent calls made by automated machines, and heavy charges imposed for tiny amounts of debt.

Members cited one bank customer said to have been charged £176 for an overdraft of 70p, and another pressured to take out a loan to avoid default, which would have cost an extra £2,700.

The MPs also expressed concern about loans to businesses: "We conclude that whilst the banks insist they are open for business, a significant amount of SMEs in Scotland still appear to be struggling to gain access to affordable finance."

They said that in future they would expect the Federation of Small Businesses in Scotland to be able to tell them that their members fully understood the reasoning behind the terms on which they had been offered finance.

The committee was also critical of bankers' bonuses, commenting: "It is disappointing that the Scottish banks in receipt of tax payers' money continue to pay large remuneration packages to senior level executives, particularly when the rank and file bank employees on modest incomes are in fear of losing their jobs."