The Treasury Committee has launched a new inquiry into whether UK banks are doing enough to help vulnerable customers.
As part of the inquiry, the Committee will examine whether vulnerable individuals are being overcharged for insurance. A report published recently by Citizens Advice suggested that some individuals are losing as much as £877 a year for being a loyal bank customer.
The inquiry will also scrutinise whether certain groups of consumers are being excluded from receiving a basic level of service from their bank.
The Treasury Committee will look to address these issues by considering the definition of vulnerability; any practices currently in place; which customers suffer the most when bank branches close down, and how to cater for their needs; the impact of ATM closures; and how post offices can help in areas where bank branches have closed.
Commenting on the matter, Nicky Morgan, Chair of the Treasury Committee, said: ‘With customers expected to take more responsibility for their financial planning and resilience, bank branches closing, and the number of free-to-use ATMs falling, it’s becoming increasingly difficult for vulnerable customers to access certain financial services.’