Consumers say banks lend irresponsibly

The trust in UK banks has almost completely disappeared with 73% of consumers believing that banks act irresponsibly by lending too much money, according to a recent survey by ASDA. However, only 4% of those asked said it was the sole responsibility of the banks to check how much customers can afford.

Surprisingly, when asked whose responsibility it is, their own or the bank's, to ensure they are not lent more money than they can reasonably afford to repay, consumers don't simply point the finger at banks - 40% said it is mainly the responsibility of the individual. A further 36% of consumers said the responsibility should be shared equally between individuals and banks.

The research, carried out just days before leading UK bankers apologised to the Treasury Select Committee for the ‘turn of events' which lead to recent government bailouts, found that 81% of consumers believe the government should regulate the sharing of information between banks and carry out background checks to ensure customers don't build up unsustainable debt.

The call for information sharing comes just days after it was announced that banks were cracking down on ‘credit worthy customers' by using a new early-warning information sharing system, in an effort to increase information sharing.

Gev Lynott, Financial Services Director, ASDA explains : "It's no surprise that trust in banks has fallen sharply over recent months, but there also appears to be a strong sense of personal responsibility among our consumers who feel that taking on credit isn't a decision they should take lightly. We are pleased to see such a high proportion accepting that it's their responsibility. We now need the Government, banks and relevant industry bodies to be more open in their sharing of data on customer overdrafts, student loans and utility repayment history so that we can be clearer about existing levels of debt and help customers only take on debt they can afford.