Banks urged to make cash protection policies clearer

28 May 2012

Banks across Britain have been urged to clarify their cash protection policies in order to make sure customers know where they stand should their lender go bust.

Last year, the Financial Services Authority made it compulsory for lenders to display notices in their braches and online so people are aware that their deposits are insured up to a value of £85,000 ($133,000) should their firm run into serious financial trouble.

However, while admitting this represents a positive step towards improved transparency in the sector, the Financial Services Compensation Scheme (FCSC) has today (28 May) called on companies to go above and beyond this stipulation.

Mark Neale - chief executive at the FSCS, which came into operation in December 2001 - commented: "The banking crisis shows how important it is for consumers to have clear information about FSCS protection."

Mr Neale went on to say that more action is "essential" if consumer confidence in the UK banking industry is to be improved moving forward.

By Tony Aynsley

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