The European Commission has published a report on retail financial services today, which points out several problems. The problems are widespread when it comes to information and advice given to consumers, some of them being for example information that is difficult to understand, opaque bank fees and a low rate of consumers switching banks. The low rate of switching is due to a very fragmented market and means the consumers cannot fully take advantage of the EU’s internal market.
According to the report the opaque fees have the effect that it is difficult for consumers to know how much they are paying for the service and also difficulties comparing offers. For 66 % of the banks surveyed, the fees for current accounts were so unclear that experts compiling the report had to contact the bank for further clarification of the fees, in order to calculate the actual cost.
According to the EU's Unfair Commercial Practices Directive it is already prohibited to mislead consumers and distort choice. Examples are omitting information or giving unintelligible information. The Members States have an obligation to enforce these laws.
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