Richard Lloyd, Which? executive director, said:
“For too long customers have been getting a raw deal from the biggest high street banks, so a full inquiry into the current account market is welcome if long overdue.
“While there have been encouraging signs of change from some banks, we need to see a revolution in customer service and much better, easily comparable products if more people are to be convinced that it’s worth switching accounts.
“The CMA must now get to the bottom of why this market is not working for consumers, but the banks should not waste any time in making changes to put the interests of their customers first.”
Notes to Editors
Which? has set seven tests for a truly competitive current account market:
1. Are firms competing genuinely with better quality, innovative products or are they exploiting consumers’ behaviour?
2. Are consumers getting a choice of products which meet their needs and offer value for money?
3. Is there enough clear information about the product for consumers to compare easily?
4. Are there enough engaged consumers to drive competitive pressure?
5. Do consumers have everything they need to drive competitive pressure – are there barriers to switching?
6. Are consumers able to get quick and fair redress when things go wrong?
7. Are new firms which offer a better deal to consumers able to enter the market and compete on a level playing field?