Record profits being made by UK banks are angering their customers and consumer groups. Barclays has just announced its profit last year increased by more than a third to 10.6 billion euros.
Emma Bandey of the British Consumer’s Association magazine Which challenges the legality of bank charges. She said: “The banks know that these charges have to be in line with consumer contract regulations, they can’t be used as a profit stream. Now the banks are saying these charges are fair, so they’ve got nothing to worry about, but Which believes these charges are unfair and do breach consumer contract regulations.”
Consumer groups accuse UK banks are charging excessive fees particularly for unauthorised overdrafts. For example, Barclays can charge up to 130 euros a day.
The British Bankers’ Association responded that high profits are good for the UK economy as pension funds invest heavily in bank shares so the profits benefit anyone with a pension.