Banks fairer than building societies

More Britons think banks are fair than think building societies are, new research reveals.

Just 24 per cent of UK residents think building societies are fair, five per cent fewer than think banks act fairly.

However, it is investment managers that are really reviled, with the British public ranking them as the least fair profession - level with politicians.

Only one person in 25 (four per cent) thinks investment managers act fairly, fewer than think traffic wardens are fair.

Pensions companies (seven per cent), insurance firms (ten per cent), and financial advisers (12 per cent) also receive low fairness scores, Mintel reveals today, all ranking below accountants and lawyers.

"When it comes to financial professions consumer perceptions regarding the fairness of pension companies and investment managers are exceptionally poor," said Paul Davies, senior finance analyst at Mintel.

"And while banks and building societies seem to have a much fairer reputation, the research would appear to be disappointing for the building society sector.

"Conventional wisdom has long suggested that building societies are perceived in a more positive light than their hard-nosed banking competitors.

"This is mainly due to the absence of external shareholders, which means that mutuals are owned by and run solely for the benefit of their members.

"However, the research shows that a greater proportion of consumers now regard banks as being fair and this may imply that building societies will no longer be able to rely on their friendly image to win business."

In terms of financial practices, early repayment fees on loans are the top of Briton's grudge list.

Two UK residents in five (39 per cent) think being made to pay extra for repaying loans early is unfair.

The next biggest bugbear is offering new customers better rates or conditions than existing ones, Mintel reveals, with 36 per cent per cent of Britons thinking this is unfair.

Almost as many people (32 per cent) believe waiting for cheques to clear is unfair.

Nationwide is currently campaigning on the grounds that it offers both new and existing customers the same rates, while Lloyds TSB has recently become the first UK bank to clear cheques instantly. XXX