More complaints against Banks

Over the past few months there have been a large number of people who have felt they are being hassled and intimidated by their Banks. Many customers have been getting letters and phone calls from their Banks 'cold calling' and trying to get them to sign up to a 'managed loan' system.

The 'managed loan' which the banks say is to help their customers in debt consolidate their existing loans, can actually end up costing customers more, as the interest rates can actually be twice as high as the rates some customers are currently paying.

Most people trust what their banks say and there is a worry that not only are people getting deceived into thinking they are getting a better deal than they actually are, but that some of the more vulnerable clients are being pressured into taking out the managed loan.

The Banks say a managed loan is only offered to those customers who appear to be having difficulty with their finances, the interest rate is higher because they are classed as being 'higher risk', but the loans are flexible, can be offered over a longer term than usual and rates may drop after the first year.

The managed loan is probably a great option for certain people and there is no issue with it as a service, I think the way in which they are sold could be a problem - it certainly seems like there is some mis-leading advice and too much pressure on customers to take the service out though.