Monday, August 20, 2012

Banks to use Libor parliamentary probe to push for end of free accounts

Banks are plotting to use a parliamentary inquiry into their bad behaviour as a way of imposing account fees on customers.

MPs and peers on a commission set up to examine the recent Libor scandal will be approached by financial institutions this week which will argue in favour of introducing current account charges.

Several banks are expected to make the case that ‘free’ accounts were partly to blame for reckless actions by lenders and scandals such as the mis-selling of payment protection insurance.

Santander is believed to be keen to introduce the fees and is expected to make its case to the Parliamentary Commission on Banking Standards on the disadvantages of ‘free’ accounts.

Critics fear the joint commission – set up after Barclays admitted it had attempted to rig Libor lending rates – could now turn into a free-for-all for banks to ram through account fees. Read More