Help excluded, campaign urges banks

A coalition of charities and community groups have called on banks to increase access to financial services for the millions of people who are currently excluded.
By The Newsroom
Published 19th Feb 2010, 20:36 BST
Updated 19th Feb 2010, 20:37 BST

The Better Banking Campaign said between five million and seven million people could not access mainstream credit, such as overdrafts, loans and credit cards, while nearly 1.8 million people do not have even a basic bank account.

As a result, it said these people were being forced to borrow money from payday lenders and home credit companies, which often charged interest equivalent to 2,500 per cent a year.

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The campaign is calling for financial institutions to be given incentives and obligations to encourage them to offer services to people who are currently excluded.

It also wants caps to be imposed on unfair interest rates and greater transparency on which areas have the biggest problems with financial exclusion.

Research carried out for the group found 70 per cent of people think having access to mainstream financial services should be a basic right, while 55 per cent think being able to access them is essential for everyday living.

Steve Wyler, spokesman for the campaign, said: "Considering how much public money has propped up the financial institutions, it is deplorable that they aren't currently supporting the people and businesses most in need in our communities."