Business bank account providers accused of customer betrayal

Providers of personal and business bank accounts were recently accused of customer betrayal for their neglect in passing on the benefits of the record low base rate, savings accounts experts say.

The Bank of England’s Monetary Policy Committee recently voted to maintain the current base interest rate at 0.5 per cent for the 29th consecutive month.  Meanwhile personal and business loan providers continue to charge for finance at a figure many times higher.

The base rate, which was set to its current level in March of 2009, has been held steady at the same rate for the longest period of time since the Second World War.  Consumer Action Group co-founder, Marc Gander, remarked that interest rates were reduced in order to have some benefit for the ordinary Brit, which makes this betrayal by the banks even more hard to swallow.

The co-founder had harsh words for UK banking providers.  Mr Gander scoffed that instead of being given the appellation of ‘too big to fail,’ banks in Britain should instead be referred to as ‘too big to care’ about their customers’ needs.

While it is true that mortgage rates have declined slightly in the past few weeks, the rates that are charged are still far above the base rate.  An average loan with a fixed term of two years carries a rate of 4.32 per cent, which exceeds the base rate by almost a factor of nine.

As if things aren’t bad enough, industry experts say that savers have been left out in the cold on approximately £72 billion worth in interest since the BoE’s Monetary Policy Committee agreed to reduce the base rate.

© 2021 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

Tags: , , ,