Unfair bank charges contribute to poverty gap - Taylor

5.19.28pm GMT Tue 12th Dec 2006

The Liberal Democrats have called on the Government to take action on unfair bank charges, ahead of a BBC programme this evening highlighting the dubious legality of the billions of pounds made by banks every year through unjustifiably high customer charges.

Commenting on the BBC investigation and highlighting the effect of bank charges on poverty, Liberal Democrat Shadow Social Exclusion Secretary, Matthew Taylor MP said "The BBC's investigation will report what a lot of people have known for a long time - that banks are charging customers extortionate amounts for what actually costs them relatively little. There is little transparency in the way that the charges work, and making these kinds of profits from people facing financial hardship is unacceptable.

"These charges work to keep those who are already in difficulty down. For many the charges plunge them further into spiralling debt that they cannot escape from. As debts mount the charges get worse, leading to more and more debt. How can the Government talk seriously about closing the ever-widening poverty gap when it won't do anything to help people escape this vicious cycle?"