MSE News: Banking system 'isn't working', says Treasury Committee

I'm not entirely sure what exactly the committee chairman means by saying that "customer needs to know what they are buying and what they are paying". It doesn't sound too dissimilar to some of the noises being made after Cruickshank in 2000.

Showing APRs clearly doesn't stop people making bad loan decisions. Are they suggesting there should be a minimum font size for the list of bank charges so they are easier to read? Are they suggesting providing opportunity-cost figures of "if you put your money in competitor x's account it would earn y instead" ?

I heard Andrew Tyrie MP on Moneybox this morning, and he seemed to be having a go at the term "free banking" - something which comes up every so often. If banks are not allowed to call this "free" banking, then surely supermarkets can't offer free parking, or free toilets, shops offer free bags, etc etc. None of these things are "free" and of course are paid for through other charges (ie shop prices in these examples). I personally don't get the hang up on the use of the word "free" - it means no charge at point of consumption/use. It doesn't, of course, necessarily mean it's the best deal overall.

The bottom line is, surely, that for whatever reason, very few people seem interested in changing their bank account even if they get a rubbish deal, poor service, expensive charges or a massive national debt due to irresponsible behaviour. Let's face it, if a banking crisis like we're in doesn't motivate many people to change their account, then quite surely nothing will.

Forcing banks to dish out more "explanatory" paperwork or confusing statistics won't end up making much of a difference, will it?