Banks are 'mis-selling to the vulnerable'

<p>A previously unpublished document from the Citizens Advice Bureau to the Financial Services Authority shows the paid-for accounts, costing on average around £15 per month, can lead to "unmanageable debt problems" for those on low incomes. The FSA is expected to publish a critical report in the next two weeks demanding changes to the way in which packaged or bundled accounts – including services such as insurance cover or roadside assistance – are sold. More than 10 million people across the UK use the accounts, but the CAB has accused Britain's banks of blanke-selling these products to those with learning difficulties, a basic understanding of English, and a limited knowledge of personal banking. Gillian Guy, chief executive of the Citizens Advice Bureau, said: "We've seen people who thought they'd opened a basic account only to find they had unknowingly been given an account with monthly charges, pushing some of them into debt. Others believed they could use all of the benefits of the account, not knowing that they weren't covered by the insurance." One man with learning difficulties was existing on part-time wages of around £300 per month, said the CAB. He had debts of over £1,400, as well as an overdraft, compounded by being sold a packaged account with benefits he was unlikely to use. As a result, the customer was paying around 20pc of his income on bank charges and getting still further into debt.</p>

Banks are 'mis-selling to the vulnerable'

A previously unpublished document from the Citizens Advice Bureau to the Financial Services Authority shows the paid-for accounts, costing o...

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