Profit margin increases could make banks a fortune

According to a recent report many of the banks in the UK could net a fortune in additional funds as a result of increasing profit margins on loans and finance. It is thought that banks could end up making around £3.6 billion as a result of increasing their profit margins, and some officials are concerned that these profits will be made off the back of consumers getting a raw deal.

One official stated: “Just as consumers are feeling the pinch, so too are banks, but unlike the average person who has to somehow trim costs from their everyday budget, banks can – and clearly have – been sneakily upping interest rates by 0.25 per cent here, 0.5 per cent there, in order to claw back some of their lost revenues. Whereas people can perhaps save £20 or £30 a week by being savvy spenders, our figures show banks creaming £3.9 billion more than we would hope and expect from their loyal customers who are saddled with a mortgage, credit card debt or loan.”

Another added: “The cost of credit is steadily increasing, and we are concerned that banks are using the current crisis to squeeze more money out of people who are already struggling. Consumers will be fuming if banks who have been bailed out with taxpayer money are increasing charges and arrangement fees, yet falling over themselves to cuts savings rates. An independent review of banking is urgently needed to ensure that consumers are offered a fairer deal and have access to value for money products.”