The Times - Brown must rein in banks over charges

GORDON BROWN’S to-do list must be lengthening by the day as he prepares for his coronation as prime minister, but here’s one more for him: must deal with the bank charges mess.

It may not be up there with sorting out Iraq, but 3m people have downloaded a standard form to complain about what they see as unfair treatment by their bank, and thousands more claims are being sent in every week. That’s a lot of votes to sway with firm action and banging heads together.

A favourable verdict at Birmingham county court last week gave banks renewed hope that they could continue their curmudgeonly habits. The decision is not binding, but it will only encourage banks to continue their petty tactic of prolonging disputes. It is a truly Dickensian approach which has rightly been criticised by Judge David Mackie of the London mercantile court.

The Competition Commission has weighed in with a report recommending clearer statements, 14 days’ warning of charges and making it easier for customers to move to another bank.

The British Bankers’ Association rather sniffily pointed out that clearer statements are no use to those who don’t read them, implying that many don’t – but whose fault is that?

In any case, none of this will happen for at least another year, and maybe longer. The real problem is that the banks can’t agree among themselves what to do, and the laggards usually win.

Brown should not try to micro-manage the banks or create yet more bureaucracy. But fresh hints of a windfall tax, or moving some of the government’s extensive banking business elsewhere, might work wonders.

Until then, complainers should go to the Financial Ombudsman Service. It is free and sympathetic, and you can go on to court if you are still unhappy.

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