Will PPI mis selling lead us to fee-based banking?

Nearly a sixth of Britons would not be able to afford to have a current account if lenders put a stop to “free” banking, according to a survey by uSwitch.com of more than 1000 UK consumers.

The survey comes after a series of proposals have suggested fee-based banking could help prevent future mis selling scandals such as that of payment protection insurance.

Of those polled, more than eight in 10 (81%) stated they would not be prepared to pay for a current account while a third (32%) said they would “think twice” about even having a current account if they were required to pay a fee.

Despite these firm opinions, only 41% of those surveyed believed fee-free banking would exist in a year.

The financial services industry has been described as having “lost all credibility” following the recent payment protection insurance mis selling and Libor rigging scandals. Fee-based banking is one idea under consideration to create a more transparent system and restore credibility to the sector.

However the survey also revealed only 14% of people felt the clarity of a fee-based current account system would make them “trust their bank” more. Meanwhile 52% deemed it as another “money making exercise”.