The commission is headed by Conservative MP for Haltemprice and Howden David Davis, Treasury select committee chairman John McFall and Liberal Democrat Shadow Chancellor Vince Cable. Witnesses at the first of three sessions slated banks for their sales culture and their commission-driven practices.
Citizens Advice Bureau chief executive David Harker said “the clock needs to be turned back from banks that are shops that sell things” and instead offer “impartial, generic advice” independent of product selling.
Toynbee Hall head of financial inclusion Sian McLean said banks have a “social responsibility to make sure the products they sell are the correct products for the customer”.
Financial Mail personal finance editor Jeff Prestridge said: “People still trust the staff in branches but they are being abused because the staff are not allowed to treat customers fairly, as is required, and the FSA has stood aside and allowed it to happen.”