You are here: Home - Investing -

Mistrusted banks ‘desperately need’ reform

0
Written by:
19/09/2012
Consumer body Which? has called for ‘desperately needed' reforms of the banking sector following research indicating widespread lack of trust among consumers.

The Which? research indicated just one in ten consumers trust bankers to act in their best interests. 

The same research indicated that two thirds of consumers (67%) think that bankers are unlikely to lose their job if they lie or cheat.

A similar proportion think bankers are unlikely to lose their job if they fail to comply with industry codes of conduct (63%), deliver consistently poor service (64%) or receive a high number of complaints from customers (64%).

More people say they distrust bankers than estate agents (65% compared with 51%) and just one in ten (10%) think that bankers are well regulated.

Following these findings, Which? has launched a campaign calling for bankers to put customers before sales and to introduce pay and bonus schemes that prioritise customers.

It also says bankers should comply with a code of conduct independent of the banking industry and should be struck off for where malpractice occurs.

Similarly, it argues that senior executives should be held accountable for mis-selling and poor conduct, with stronger criminal sanctions up to board level and a function that enables the retraction of bonuses.

Which? said: “The banks need to listen to the public and make sure consumers’ best interests are at the heart of these reforms which so desperately need to be made.” 

Which? executive director Richard Lloyd added: ‘We thought we’d seen banking at its lowest point when the public were forced to bail out the banks but since then we’ve seen the Libor rate-rigging scandal and continued mis-selling.

“All the while the bankers who presided over corruption continue to enjoy hugely inflated pay and bonuses.”

 

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2205923-marketing-pensions
Investing in care homes on the rise

With an aging population, demand for care homes in the UK is increasing and the number of investors looking to...

Close