NCC: Government's Northern Rock announcement

NCC comment on Government's announcement that the guarantee arrangements previously announced to protect existing depositors of Northern Rock plc will be extended to all new retail deposits.

Commenting on Government’s announcement today that the guarantee arrangements previously announced to protect existing depositors of Northern Rock plc will be extended to all new retail deposits made after 19 September, Ed Mayo, Chief Executive of the National Consumer Council (NCC) says:

‘We welcome the extension of the guarantee to new customers at Northern Rock. It is evidence that the regulators are willing to go the extra mile to provide the reassurance that consumers need. It is ok to take a risk on investments, but people want to know that their deposits are safe wherever they bank.

‘We would encourage the regulators to complete the reform and upgrading of the existing compensation scheme so that this guarantee can come to a natural end in future with fair notice.’