Banking
The Consumer Council is committed to driving change to benefit consumers and make sure they get the best deal possible from banks and building societies (for simplicity we’ll refer to them as banks). We constantly monitor the interest rates and charges applied by banks and the way they treat their customers so that we can identify when banks are not treating their customers fairly.
Click on the links below for more information about your banking rights.
I’ve been charged too much for slipping into the red, what do I do?
How do I make a complaint about my bank or building society?
How do I switch to another bank or building society?
What was the outcome of the super-complaint and Competition Commission inquiry?
What changes have to be made by the banks to make the market better for consumers?
I’ve been charged too much for slipping into the red, what do I do?
The Consumer Council has worked with consumers and the Office of Fair Trading (OFT) to challenge how much consumers have to pay for slipping into the red. In November 2009 the Supreme Court ruled in the favour of the banks and in December the OFT said they would not continue its investigation under the Unfair Terms in Consumer Contracts Regulations (1999). Many consumers believe the charges they have paid in the past, and continue to pay, for slipping into the red are unfair. They courageously challenged their banks but they have been let down. Following a lengthy legal process it is clear that existing consumer protection is inadequate. Click here for more information.
How do I make a complaint about my bank or building society?
If you’re not happy with your bank you should complain directly to them first. Let them know you want to make an official complaint and they will acknowledge receipt of your complaint promptly. They will provide you with a full response within eight weeks. If you are not satisfied with their response you can take your complaint to the Financial Ombudsman Service (FOS). The FOS helps settle individual disputes between banks and their customers as an alternative to the courts and it is completely impartial and free. Get their complaint form by phoning 0845 080 1800 or download it from their website at www.financial-ombudsman.org.uk. The FOS will write to confirm that they have received your complaint and to let you know what will happen next.
The Consumer Council can’t take up your complaint on your behalf but we can support you through the process. You can contact our consumer support team on 0800 121 6022 or 028 9067 2488 or email complaints@consumercouncil.org.uk.
How do I switch to another bank or building society?
There’s never been a better time to get your finances in order and decide whether you’re getting the best from your account. Banks have a switching service to make moving your direct debits easier, so when you decide which bank to move to, ask for their help to switch. But before you choose your new bank, read the Consumer Council’s guide to shopping around to make sure you get the right account. Click here to download our guide to switching.
What was the outcome of the super-complaint and Competition Commission inquiry?
In 2004 the Consumer Council and Which? took a super-complaint against the big four banks (Ulster Bank, Northern Bank, Bank of Ireland and First Trust Bank) here because we felt consumers weren’t getting a fair deal. The super-complaint led to a Competition Commission investigation which concluded that bank customers in Northern Ireland were not being offered competitive personal current accounts (PCAs) and that the banks would have to change.
The Consumer Council can make a super-complaint to the Office of Fair Trading (OFT) when we think there is something wrong in a market that is causing consumers to be disadvantaged. The OFT has to investigate and decide what should happen next, in this case the OFT referred our complaint to the Competition Commission.
What changes were to be made by the banks to make the market better for consumers?
The Competition Commission set out a list of legally binding remedies in February 2008 for the banks to implement. The Consumer Council welcomed these changes as consumers were given the information they needed to take control of their banking and to switch banks to get the best deal possible.
In summary the changes were:
- Stop using ‘bank-speak’ or jargon – make communication with customers clear and easy-to-understand.
- Explain charges – tell customers how much will be charged and why.
- Give customers who are switching banks a free 3 month overdraft to remove the hassle and fear of switching.
- Give customers an annual ‘wealth-check’ so that they know how much their account has cost them.
- Give customers at least 14 days’ notice before they take penalty charges from their account.
- Send an annual reminder to customers about their right to switch to another bank.
- Provide better information on statements including details on charges and interest rates.
Click here for more information on the Competition Commission's remedies.
Since the banking order was implemented, two new EU directives have come into force. These are the Payment Services Directive and the Consumer Credit Directive. These are maximum harmonisation directives,which means that they supersede elements of the banking order. Consequently, in October 2010, the Competition Commission will consult on proposed amendments to the Northern Ireland Personal Current Account Banking order.
The Competition Commission believe although the order itself will be amended, the original measures themselves will be continued through the existing regulations and voluntary arrangements brought in since the Order was made.
The Consumer Council will review the proposal to ensure that any proposed changes will not have a negative effect on consumers in Northern Ireland.
The original Competition Commission remedies were carefully constructed to address and improve the personal current account market here. The Consumer Council will work closely with the Competition Commission and banks to ensure that the hard work and investment made to implement the remedies is continued and that the interests of all consumers are fully protected.
