MP BLASTS 'DISGRACEFUL' BANK

Monday, 21 June 2010

Lloyd's TSB has still not paid compensation to a Southport mother after they charged her 500. The bank was ordered in January to pay back money owed to Ilze Moskvina and other migrant workers, plus 350 compensation. However, she is still waiting for payment.

The Financial Ombudsman found that the Lloyd's TSB branch in Southport had signed Ilze and other low paid migrant workers up for premium 'gold' and 'silver' bank accounts with monthly charges, when all they wanted was for a basic 'no frills' bank account.

They were signed up either by agency staff or the banks employees themselves. Most of the charges were only incurred because the first monthly fees put the account 'into the red'. The low paid workers then found it difficult to get back into balance and suffered more and more fees and charges. They argued that they did not properly understand and in some cases, could not read, the contracts that were given to them to sign by the bank agents.

The scandal was exposed by the work of the Migrant Workers Sefton Community and backed by MP John Pugh. They took the case to the Financial Services Ombudsman in December who ruled that the bank had to repay the workers and set down a four week deadline of compliance.

Mr Pugh said: "It's disgraceful that six months down the line the money has still not been repaid, despite the fact that the Financial Ombudsman set a limit of four weeks."  "Its another example of a bank flagrantly ignoring rules, and a worrying insight into how they regard the judgements made by the Financial Services Ombudsman."

Ten of the 12 workers have now received their money, but the Migrant Workers Sefton Community believes that this is merely the tip of the iceberg, and that there are many other workers in similar positions.