Banks risk complacency over current accounts

As the Competition and Markets Authority proposes an investigation into the current accounts market, Citizens Advice highlights how banks need to provide a more inventive offer for current account customers and that there should be a minimum set of standards for basic bank accounts.

Citizens Advice Chief Executive Gillian Guy said:

“A lack of competition in current accounts could mean people are paying over the odds for overdrafts and other add-ons. Banks risk being complacent that consumers won't switch, meaning improvements and developments to accounts are few and far between. Customers need better current accounts and an investigation into competition is an opportunity to address this.

“It's important to remember that there are some people shut out of the banking system altogether because they can't get a basic bank account. Many of these accounts have been stripped back which means even the very basics of banking - like paying by direct debit - are not available to these consumers. There needs to be a set of minimum standards for basic bank accounts which makes sure those who need these accounts get them and the accounts come with the essentials for day to day banking.

“Last year I called on banks to up their offer to customers by providing services that can save customers money, including identifying deals on the things they buy regularly. While there has been some progress, there is still room for more inventive banking services.”

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Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.