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Citizens Advice says banks aren't helping poor
25/01/2006 15:35:00
Citizens Advice has criticised banks in the UK for not helping the poorest people open a bank account.
Those who struggle financially are either not being allowed to open basic bank accounts or are facing high charges that deter them.
The basic bank accounts, which six million people already benefit from, allow people to benefit from what has become one of life's essentials when they do not qualify for a standard bank account.
But, according to Teresa Perchard, Citizens Advice director of policy, one in 12 households still does not have a bank account.
Ms Perchard said: "Many of the most vulnerable are denied access to a bank account in the first place, or unfairly penalised when they open one. Our evidence shows that the consequences and costs of this can be severe, including escalating debt and the threat of homelessness."
"Banks have made commitments to offer basic bank accounts but there is still a very long way to go to meet their ambitious target of halving the number of people without bank accounts by the end of 2006."
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