Commission hears allegations of 'rip-off' bank charges
The UK Competition Commission is in Belfast today, taking evidence as part of an unprecedented investigation into alleged "rip-off" charges imposed on personal account holders by banks in the North.
The Big Four banks in the North – Ulster Bank, Northern Bank, First Trust and Bank of Ireland – are being investigated by the Commission following the submission of a "super-complaint" to the Office of Fair Trading by Which? And the Consumer Council.
The Consumer Council launched their campaign against the banks claiming they were charging customers far more for bank services than their counterparts charged customers in England, Scotland and Wales.
Steve Costello, chairman of the Council, said: “We submitted a super-complaint in order to bring change to the market. We are starting to see that change happen and there has been more movement in the market in the past year than in the past 30 years, but much more is needed.
“The Consumer Council calls on all banks here to offer their customers a decent rate of interest and scrap unfair transaction changes.”
The council has been twice to London to meet with the Competition Commission ahead of today’s session.
The Commission said it would be meeting a wide range of community organisations and charities as well as political parties and local authorities.
Meetings will cover such questions as:
:: What leads customers to open a personal current account with a particular bank and what leads them to switch banks;
:: How important are bank changes;
:: How well informed are customers about terms and conditions;
:: How much is the personal current account market changing.
Inquiry chairman, Christopher Clarke, said the investigation was looking at whether competition was working effectively in the market for personal current accounts in the North and whether customers were receiving their banking services on competitive terms.
“We’ve already received evidence from the banks and other interested parties. This is now an opportunity for us to hear at first hand from groups who represent consumers in Northern Ireland so that they can express any concerns that have been raised with them.”
