MSE News: Watchdog cracks down on mis-selling inducements

Part of this also comes down to how we expect the services we enjoy and take for granted - my 24x7 internet and telephone banking, iphone apps, a comprehensive ATM network, ability to use ATMs belonging to another company, a branch when I want it, even if I don't use it, open 6 and preferably seven days a week, with highly trained and knowledgeable staff, plastic cards and cheque books that are replaced for free every time I lose or break them, statements sent in the post every month and whilst not forgetting my ability to complain to a regulator, ask my bank to sort out a refund on my debit card ro sort out direct debits every time another company I deal with lets me down, pay up on section 75 claims and so on. But this does cost money and we use our accounts a lot more than we used to get under Captain Mannering banking (not forgetting in the "good old days" many were socially excluded from banks because the manager didn't think they were of appropriate standing). So perhaps it's time for a more grown up than bank bashing debate about how we seriously expect / want them to operate as commercial organisations. Should they do it only the traditional way on the margin between savings and lending - but then we have a go about miserly savings rates and extortionate lending and the discriminating against the poor who can't keep balances on their accounts. Should they do it through charging people who don't follow a set of rules ala Ryanair - no we tried that and didn't like it either. Should they do it by subsidising the costs of our banking system by selling of discretionary products, we're reasonably nervous about that working well. But bottom line is 2012 we're consuming more than we ever did from banks twenty years ago and no one seems to have a reasonable proposal about how those services should be paid for. The sharp selling is wrong, unmistakably wrong. There's no guarantee that if we paid for the transacting costs of our banking that would resolve misselling or achieve a miraculous culture change. It's not just banks who are doing this, though Martin rightly points out the consequences in banking are significant. The cross sell is regrettably everywhere, every week Mr Lewis warns about insurance companies auto renewing, charging extra for unnecessary legal insurances, the unjustifiable non optional extras added by airlines, discretionary service charges at restaurants and the list goes on. but the debate is one sided, we want everything from our banks except for any expectation that we should pay for it. The closest we have is FirstDirect who demand minimum deposits and balances and offer relatively little in the way of goodies except for notably good service - but are we all willing to pay for service.