<%@ page language="java" pageEncoding="utf-8" contentType="text/html;charset=utf-8" %> <%@ include file="/includes/tagLibs.jsp" %> <%@ include file="/includes/globalVariables.jsp" %> Personal finance - Press - About Which? <%@ include file="/components/commonCss.inc" %> <%@ include file="/includes/webSideStory.jsp" %>
About Which? No advertising, no bias, no hidden agenda

Government urged to consider long-term effects of Lloyds / HBOS deal

23 October 2008

With the Office of Fair Trading (OFT) due to report on Friday on its competition investigation of the proposed Lloyds TSB / HBOS merger, Which? has written to Lord Mandelson, Secretary of State for Business, Enterprise and Regulatory Reform, urging him to ensure consumers are protected.

Which? chief executive Peter Vicary-Smith, says:

“The merger may be necessary for short-term stability, but the Government must take a long-term view of the effects this will have on a sector where consumers are already losing out due to weak competition.*

“On behalf of all consumers, we urge the Secretary of State to ensure measures are put in place to prevent this new ‘super bank’ from engaging in behaviour that is detrimental to consumers**.”

Notes to Editor

Which? has started a major new campaign for banking reform. For more information, visit www.weownthebanks.co.uk or contact Adam Williams on 0207 7707563 / adam.williams@which.co.uk

* If the two companies retained their 2007 market shares the merged bank would control 30% of the current account, 28% of the mortgage, 25% of the savings and 21% of the personal loans markets.

Which? has long-standing concerns about the lack of effective competition in the retail banking sector. Among the issues we have sought to address are excessive credit cards charges, the proliferation in charging for ATMs, unfair overdraft charges, mis-selling of Payment Protection Insurance and the slow pace of ISA transfers. Despite our efforts and numerous reviews into the sector, the OFT’s recent market study concluded that “the market in personal current accounts is not working well for consumers”.

**Which? does not believe the normal competition regime is sufficient to deal with the weakening of competition that results from this ‘super bank’. Which? is seeking assurances from the Secretary of State that special measures will be taken to prevent the merged parties further harming competition.