Northern Rock customers deserve better

Fool.co.uk responds to HM Treasury’s decision to limit guarantees to Northern Rock depositors.

David Kuo, Head of Personal Finance at Fool.co.uk, says: “We are disappointed that HM Treasury has chosen to limit guarantees to Northern Rock customers rather than extend its assurance to all bank customers that their deposits are safe.

“Until the recent events at Northern Rock, many consumers were unaware of the Financial Services Compensation Scheme and the measly guarantees it provides. However, this is now widely known, and the Government must do more to reassure the public.

“The cat is now out of the bag, and bank customers want guarantees that their money is safe regardless of the size of their deposit. Pussyfooting around is no longer an option, which is precisely what the authorities are doing by resurrecting limited guarantees.”