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Following Barclays scandal, British customers moving from banks

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When (not if) the Libor scandal reaches the US shores, there's a high likelihood of US customers shifting away from banks and into credit unions, again. The previous wave involved millions of customers shutting down their accounts with the mega-banks and moving over to smaller credit unions. Hopefully action groups are preparing for the next wave of disgust with the corruption of big banks because we're getting very close to a lot more news of blatant corruption within that putrid industry.

If you are banking with one of the big banks, chances are very high that you're only enabling bad behavior by giving them business. It's a hassle to change, but why help the corrupt? The Guardian:
Angry bank customers have been voting with their wallets and bombarding co-ops, building societies and credit unions with applications for current accounts over the past week, after the NatWest computer meltdown and the Barclays rate-rigging scandal.

Data compiled by the campaign group Move Your Money UK shows an explosion in requests to switch from large high street banks to smaller alternatives that consumers hope will take a more ethical approach. Charity Bank, which lends its savers' money to charities, has seen a 200% increase in depositors; the Ecology Bank has had a 266% jump in applications; and Triodos, a Bristol-based "sustainable bank", a 51% increase.

Credit unions, which are often small institutions investing people's savings in their local economy, have seen week-on-week increases of at least 20%, some of them up to 300%. Evidence of the growing number of switchovers comes as Ed Balls, the shadow chancellor, on Sunday calls on the government to make it easier for consumers to switch to another bank or building society. Speaking on the BBC's Andrew Marr Show, Balls will say that while people are increasingly dissatisfied with their banks, it is still too difficult for customers to switch accounts. He told the Observer: "Ministers are dragging their feet on reforms to improve competition and consumer choice in the banking sector. Consumers must come first. It's time for action."

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