Power to the people’s bank

From The Sunday Mirror: 

A world away from the City banks and boardrooms there's another credit crunch going on... three million Britons are unable to open a bank account.

High Street banks won't serve them because they don't have enough money and are there fore a "risk" - which is rich coming from the bankers whose reckless greed has put the entire economy at risk.

For far too many people denied access to basic banking, the only financial services on offer are dodgy doorstep lenders and the store card Scrooges who offer 200 per cent interest rates.

Meanwhile, the private profiteers who run our utilities whack you with a higher rate if you can't pay by direct debit.

At the same time, there are too many small businesses struggling to get the credit they need to keep going, or being charged exorbitant rates by the banks.

The banks have also closed many of their branches.

Of course, there's the slightly bigger problem with the banks at the moment. The banking system relies on trust... and who'd trust the bankers now?

But people trust the Post Office. And this week I joined other MPs, post unions, pressure groups, charities and other supporters to launch a campaign for Post Bank - the idea of a "people's bank" based in the Post Office. It would help solve all these problems... and it would save local post offices too.

The basic idea is simple: Use the one public service that can be found in most neighbourhoods to encourage small savings, help local enterprises and provide basic services such as direct debits. It would offer the services of a retail bank, but in the public interest.

The Post Bank will build a proper relationship with customers and small businesses, providing trusted banking products and services that are really needed.

The Post Bank would provide all the usual basic banking products, including current accounts, debit facilities and access to credit. There will be no hidden charges, just a small fee. There would be no big bonuses, executive pay-offs or shareholders to cream off the profits. Instead, the money would be invested back into the Post Bank and the communities it serves.

Since we have taken over Northern Rock, we now also have a State-owned mortgage bank. So I would ensure the Post Bank would also offer cheap, secure mortgages.

Imagine this then: You go to the local post office and sort out your mortgage, loan or overdraft. You get your car insured, your home insured, your travel covered - even your dog. You get your stamps, send your parcel, sort out your Child Trust Fund, buy a loaf of bread and some milk and get your broadband sorted.

All in the same place. All the financial services offering the most competitive rates, all being offered in the public interest and not that of a few bonus-chasing bankers.

Simple isn't it. We, the people, will have to argue and campaign for Post Bank. We have to make the case ourselves. That's why I've helped to launch a campaign.

But don't leave it to us - we need you to sign up too. Just go to http://post.cwu.org/postbank and add your name.

Over the next few months we must include everyone in a crusade for the Post Bank. It's an idea whose time has come - a bank run in the interests of the people and not shareholders.

Quite obvious, really.