MSE News: Vanquis Bank to pay customers £169m

John-K wrote: »

I can see banks just withdrawing from large sections of the market soon. Offer a service at a level that makes a profit and you end up being fined. Offer something at !!!8220;normal!!!8221;rates and go bust as people default.

So many sectors turn out to have never actually made mi eh. It looked rosy, but the risks were not being properly accounted for.

It would not be a surprise if we see banks doing what landlords now do, and turning away benefit claiminats, anyone with even a late payment, and simply not offering mortgages to anyone who is not squeaky clean.

A tad overdramatic don't you think?

There was nothing wrong with the service that Vanquis were providing, it was simply that they should have explained to customers that interest would be applied to the monthly fee. Based on the article it would appear that they're in the process of reintroducing it now that the investigation is over and the only thing they did wrong was failing to disclose the interest.

As far as banks turning away people who are on benefits or who have late payments go, they can't do this for current accounts. They would at least have to offer these people a basic account (which aren't a whole lot different to normal current accounts.

For mortgages and other lending? If it isn't profitable to lend to certain customers they won't, which is no different to the way it is today and has basically been forever.