Labour have failed to regulate financial system

Letter to the Editor(s)

Dear Sir or Madam,

Given that the UK central bank, the Bank of England, has cut interest rates
to 0.5% one might imagine that our bailed out banks would have passed on
this change in interest rates to their customers. They certainly have in
respect of savings accounts. Most people will have found that their interest
rates in that respect have been drastically cut. On mortgages they have
reduced slightly, but not by much. It also still costs a fortune to arrange
a fixed rate mortgage.

Meanwhile the interest rates on loans, credit cards and overdrafts remain
extortionately high. The average yearly rate for a credit card is currently
18.8%. Why? If the base rate is reduced then that reduction should have been
passed on throughout the banking system. That way borrowers could afford to
spend more, boosting the economy and ending the economic depression.

The government should have forced a wholesale reduction in interest rates at
the point they offered tax payers money to prop up the financial system.
They could still do so for the semi-nationalised banks today. If the
political will was there.

I witnessed a TV advert this morning that encouraged customers with debts to
avail themselves of an internet based loans system at quickquid.co.uk. The
only catch? An eye watering interest rate of 2356% APR!

It is blatantly obvious that Labour have failed to put in effective
legislation to control lenders and that the banks themselves are happy to
extort horrendous sums from borrowers. Clearly proper regulation is
required. Unfortunately the main 'opposition' the Conservatives are in a
large part to blame for the 'big bang' of de-regulation in the first place
which ultimately led to this mess.

This upcoming British general election offers no choice between two parties
which are equally as awful as each other. Both want to drastically slash
public expenditure while allowing the banks to bully their own borrowers.

Surely we can do better? Proportional representation, independence for every
country in the UK, removal of the House of Lords and the end of the
undemocratic oath to the Queen are all measures which could and should have
happened long ago.

Old Britain is bust and we need to try something radically different.

Yours faithfully,

Joe Middleton