Banks need to do much more to help financially excluded people open and operate accounts, a Treasury select committee report said yesterday.
The report, released as part of its inquiry into financial inclusion, found poorer and excluded people were often prevented from opening accounts by identification requirements.
It also said some basic bank accounts, which are targeted at excluded groups, had “unreasonable and excessive” penalty charges.
While stopping short of demanding legislation, the committee called on the banks and the government to produce proposals for better engagement with socially excluded groups by mid-2007.
In a report last week, the committee called for better access to affordable credit for people on low incomes.