20 January 2006
Banks should be obliged to offer all council and housing association tenants more attractive basic accounts while ensuring they do not run up huge debts, MPs have been told.
According to the National Housing Federation, many accounts are unpopular with people on low incomes because of stringent security checks and high overdraft charges.
In its evidence to the Commons' Treasury select committee, which is investigating access to financial services, the federation says tenants should have the right to face-to-face advice, regular statements and a small overdraft facility.
Liz Atkins, NHF director of strategy, said: 'It's time for the government to introduce a legal requirement for affordable and accessible banking services.'
About 2.8 million people do not have bank accounts — more than half of whom are council or housing association tenants.
The committee's inquiry coincides with an increasing number of registered social landlords setting up loans and savings schemes.
Research carried out last year for the Housing Corporation showed that 100 RSLs are tackling financial exclusion in this way, but the corporation wants this number to rise by at least 50%.
PFjan2006
