Banks better than building societies for loans?

A new survey has revealed that most Britons believe that banks are fairer when it comes to the provision of financial products and services such as loans than building societies.

Some 24 per cent of residents in the UK consider building societies to be fair in the provision of services, while 29 per cent think banks conduct their practices justly, according to a survey by Mintel.

The most disliked activity among Britons that financial providers indulge in is the placement of early repayment fees on loans, with two in five UK residents believing that it is unfair to be made to repay loans early.

Another aspect of financial practice that irritates British people is that of new customers being offered better rates than existing ones, as 36 per cent of people found this unfair.

Another 32 per cent had a problem with the wait they had to undergo as they waited for cheques to clear with their bank or building society.

Paul Davies, senior finance analyst at Mintel, said: “Conventional wisdom has long suggested that building societies are perceived in a more positive light than their hard-nosed banking competitors.

“However, the research shows that a greater proportion of consumers now regard banks as being fair and this may imply that building societies will no longer be able to rely on their friendly image to win business.”

Of all the financial professionals people deal with, investment managers were the most disliked, with only 25 per cent of people thinking that they go about their job fairly.