Tuesday, 26 June 2012

British Banks Pay For Clients' Summer Holidays

Gran Canaria map
As if the British banking industry wasn't in enough trouble, RBS which owns NatWest and Ulster Bank have been unable to update many of their customer accounts since the end of last week.

It's led to some people not receiving their salaries and a possible credit downgrade as they haven't been able to pay their bills, including rent and mortgages, and in one case a man had to spend the weekend in prison as he wasn't able to pay for the bail a judge had set.

It still hasn't been fully sorted and it's possible that RBS will have to millions in compensation to their account holders who have been affected. Chief Executive Stephen Hester has pledged that none of the bank's customers will lose out financially, and it's unlikely he will be getting a bonus this year.

RBS shares have fallen 4% today in ondon trading, and if they can't update all the accounts soon they could see an exodus of customers to other banks, and it will be interesting to see how their share price performs in the coming days - a big drop can be expected if the fiasco leads to Stephen Hester resigning. We think that might be possible although there doesn't seem to be any indication of this in the media at the moment.

Compensation to customers isn't new to British banks, they have paid out billions to their customers this year after mis-selling financial products such as insurance, commonly known as PPI, and the payouts happily coincide with the cost of an average family holiday abroad.

To read more about the billions being paid out and why holiday islands like Gran Canaria will be benefitting from the compensation being paid out by the banks in the UK visit this blog British Banks Pay For A Million Families To Go On Holiday

The same site provides information for tourists along with maps for those who haven't visited before - for a Gran Canaria map visit their homepage.

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