Banks worry as profits fall
- 11TH JUNE 2007
The British financial industry is in turmoil at the moment and seems to move from one crisis to another as more and more consumers express their dissatisfaction with the way that their chosen institutions consistently treat them.
Many high street banks and lenders initially came under fire as a result of their practices concerning payment protection insurance (PPI), but they have since been hit with similar controversy as a result of unreasonable charges. Both charges and payment protection insurance contributed to bank profits, meaning that institutions are looking for ways to recoup any lost returns.
Unfortunately, insiders predict that the overpowering need high street banks have to generate viable profit will lead directly to the death of free banking and bring the UK in line with the rest of the developed world. For some consumers, this may mean that they can no longer afford to use a current account to help organize their finances. However, for others, it may mean getting further in debt.
For those individuals that do struggle to make ends meet, the end of free banking would mean that they would probably be unable to keep up debt repayments should they ever find themselves out of work through sickness or unemployment, thus making the need for payment protection insurance greater than ever.
Standalone policies, like those offered by independent payment protection provider British Insurance, can offer excellent cover at only 20% of the price of a high street bank policy and cover all debts rather than a specific one. It is cover that you really cannot afford to be without at the moment in today’s changing world.
