Tony Hazell of the Daily Mail on why you can't trust the banks


Trust. It's an ideal that's straightforward and, for many people, it is the way the world still operates. This particularly applies to older people who have a long-term relationship with a bank. So it is sickening when trust is betrayed. Modern banking is clearly no place for trust. Targets, profits and commission are the words to which most bank managers are trained to relate. But trust? Forget it.

The case of 82-year-old Tom Brandwood, who was sold a stockmarket growth product with a six-year term and high charges by Lloyds TSB, is probably only the tip of the iceberg. There are thousands of elderly and vulnerable people being ripped off regularly by sleazy salesmen. It is possible to imagine a typical sales tactic. Smile, talk for long enough and use lots of jargon. As their eyes glaze over, you can go for the kill. With luck, you can dip into their life savings and, by the time a relative notices, the deal is done.

We accept that many older people are capable of looking after their finances without outside help. But even the most adept - old and young - can be bamboozled by high-pressure sales.

That is why we have launched our Stop the Savings Stings campaign today to expose and bring an end to financial abuses of the elderly and vulnerable. We believe every sale to an elderly or vulnerable person should be reviewed by a senior compliance manager at head office, who takes personal responsibility for that sale. There is a strong case for having an independent witness, such as a friend, relative or legal adviser, present when large sums of money are involved.

In the end, it comes down to trust. Sadly, the days have long gone when we can trust our local bank.

Meanwhile....our annual mortgage survey once again makes fascinating reading for anyone buying a home. For a buyer with a £60,000 mortgage on the standard variable rate, there is a difference of more than £600 a year in the interest you could pay on your home loan, depending on your lender.

The cheapest lenders are generally the new direct banks, such as Virgin, Egg and Standard Life. In the High Street, building societies win hands down over banks and converters. A borrower with the cheapest society - Yorkshire - would have paid £300 less interest this year than someone with Alliance & Leicester or Northern Rock.

The top nine cheapest lenders were building societies and the new direct banks.

The message of our survey is simple. When you go for a mortgage, don't just look at the price for the special deal. Compare the standard variable rates being charged and what they would mean for your monthly repayments.

These are, after all, what you will probably be paying for most of the term of your mortgage.


Search within


We are no longer accepting comments on this article.