Many UK consumers switching account and loan providers
According to recent figures there are as many as thirteen thousands consumers each day in the UK that are switching providers when it comes to their bank accounts, with many angered over the extortionate fees that banks have been charging for exceeding overdraft limits, bounced cheques, and returned direct debits.
Whilst the Office of Fair Trading continues to investigate the matter of banks charging illegal and unlawful fees, thousands of consumers are claiming back these fess going back up to six years, with thousands more deciding to switch current account providers out of anger relating to the hefty charges that banks have been illegally imposing.
According to the figures nearly 13,000 consumers each day are choosing to switch account, leaving some of the leading banks in the UK fighting it out in order to attract new custom, and offering a range of incentives, such as £50 for opening an account with First Direct or £100 incentive that was being offered by the Halifax until recently.
Figures also showed that the number of people that were deciding to switch providers when it came to personal loans was rising, reflecting how unhappy UK consumers really are with the deals and service that they are receiving from financial institutions today.
Sean Gardner from MoneyExpert stated: 'Banks and building societies are feeling the pain as current account fees come under scrutiny. Customers are getting the message that you don't have to just sit there and take it. With banks under threat for overdraft fees, they are the ones feeling the pinch at the moment. These days people just won't stand for poor service or for uncompetitive deals.'
In addition to switching current account and loan providers, many UK consumers continue to try and find better deals by switching credit cards and even utility providers, which has seen competition in the UK really hotting up in a variety of areas.
Tom Smith
4th May 2007
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