Profit hungry banks get greedier
- 3RD MAY 2007
A series of investigations into the financial industry in recent months has led to accusations of greed being aimed at British banks and has served to undermine public confidence in financial institutions in general.
Financial Services Authorityinvestigations into the payment protection insurance (PPI) industry as well as unlawful banking charges have been heavily publicised with public opinion effectively turning against the banks and lenders.
Despite many banks announcing record profits during 2006, there has been speculation that these investigations will ultimately lead to many banks imposing a standard charge for holding a current account with them.
Payment protection insurance and the charges imposed for unauthorised overdrafts and returned direct debits accounted for a significant percentage of the profits made by every financial institution and so charging for a current account, as well as raising loan rates, would go some way to avoiding a drop in profits for 2007. The latter has already begun to occur so surely it is only a matter of time before we have to pay for banking.
As society is more indebted than it has ever been before, there is a real hazard that developing a long term illness or being made redundant would have even more of a detrimental effect on an individual’s personal finances. If you are unable to make repayments on debts then you stand to lose a lot more than ever before.
Contacting an independent payment protection provider like the ethical British Insurance may just provide you with a safety net in case the worst did happen. Their payment protection insurance is low cost but high value, especially when you consider the peace of mind that the protection brings.
