North’s banks criticised for imposing high charges

THE North’s “Big Four” banks were condemned yesterday for imposing higher charges and paying lower levels of interest to personal customers than would be expected if there was greater competition.

The banks were accused by the Competition Commission of stifling competition to the detriment of their personal banking customers.

A report on the four — Northern Bank, Ulster Bank, First Trust Bank (owned by AIB) and Bank of Ireland — stated: “A lack of clarity on charges and unduly complex charging structures and their application, combined with a reluctance among customers to switch providers, are restricting competition in the market for personal current accounts in Northern Ireland. These features make it likely that customers incur higher charges and receive lower levels of credit interest than they might expect.”

A Competition Commission inquiry was set up almost 18 months ago after a “super-complaint” from the North’s Consumer Council and the consumer group Which.

They complained that customers in the province suffered under charges which were not imposed by banks elsewhere in Britain. They also complained charges were too similar across the four banks.