Upto 800,000% interest rate from banks in UK

BBC radio headquarters
Radio at its very best! Money Box, one of the absolutely must 'listen to' weekly radio broadcasts from the BBC has recently announced that banks in the UK are charging, coming up for nearly, 1 million percent in interest charges for unauthorised overdrafts when penalty charges are annualised. Initiatives and actions such as this are particularly disappointing as I spend so much time addressing financial institutions about the importance of trust - as if they really need me to tell them this - but rightly they're keen to understand the 'trust mindset' of the world's best retailers...and they can trust me, it doesn't include this sort of customer abuse.

Six figure interest rates ...it's outrageous and eye watering in every sense of the word. As the BBC Money Box reported:
A customer borrowing £100 for 28 days without the consent of Santander would repay £200, for example. That is the equivalent annualised percentage rate, or APR, of 819,100%.  Please click here for the full BBC story.

I always implore the banks I address to internally 'remove' the prefix: 'Retail', from their descriptors until they've earned the right to describe themselves as such, earned the right to serve customers. Most banks don't think, operate or treat their customers the way retailers do.... and if they're serious about earning respect and trust from their customers they need a constant reminder and internal mantra:  "we mustn't call ourselves Retail until we act like retailers!" - this would be a great place to start and easily understood by the banking workforce.

Please see my previous posting about 'revenue earning units'. 

Comments

  1. These initiatives and actions such as this are particularly disappointing as much time addressing financial institutions for financial certification about the importance of trust - as if they really need me to tell them this. Thanks Martin Butler!!!

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