Banks should be more transparent with their fees

Threat of action should make banks improve their price structures

Brussels, 22nd September 2009 - Today's threatened action against banks by the European Commission should be enough for them to voluntarily improve their price structures and ensure consumers are given the best deal possible from their current accounts, Malcolm Harbour MEP, Chairman of the European Parliament's consumer protection committee, said today.

The commission has today published two new reports that focus on three areas of retail financial services where consumers face problems: pre-contractual information and advice, the level and transparency of bank fees and bank account switching. The reports show that many consumers find the fee structures hard to understand and that consumers may be paying more for their accounts than necessary.

Mr Harbour, from the European Conservatives and Reformists Group, said:

"The key to a better deal for bank clients is transparency. Too often consumers open a bank account and blindly stick with that bank and that account even if the service they receive is not appropriate.

"Financial products are like any other product on the market. We should know what we are getting before we buy and we should be able to easily change suppliers if our needs are not being met.

"The retail finance marketplace is still not functioning in the way it should to ensure consumers get the best possible deal.

"The European Commission is edging towards taking action, which I hope can be avoided.

"Any new draconian EU legislation could have unintended consequences in a sector that is already struggling to cope with the global financial crisis. The most desirable outcome would be for the banking sector itself to empower consumers with better information and increased mobility between suppliers."

ENDS

Contact:

Malcolm Harbour (MEP)on +32 228 45132; malcolm.harbour@europarl.europa.eu
James Holtum on +32 473 861762

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