OFT drops bank account charges investigation
22 December 2009 17:40:30
 |
| The OFT has dropped its investigation into bank account charges. |
The Office of Fair Trading (OFT) has announced that it will not go ahead with an investigation into the fairness of unarranged overdraft charging terms, but emphasised that it remains concerned for bank account customers.
Following the Supreme Court's recent judgment that unarranged overdraft charging terms could not be assessed in full under the Unfair Terms in Consumer Contract Regulations 1999, the OFT has decided that any investigation under the regulations would be "narrow", with "limited prospects of success".
John Fingleton, chief executive of the OFT, conceded that the Supreme Court judgment was disappointing for many bank account holders.
He revealed: "We remain deeply concerned that the market for personal current accounts is not working well for consumers and does not give banks sufficient incentives to compete.
"We are committed to securing significant changes to unarranged overdraft charges going forward, whether through voluntary agreement with the banks or by other means."
Liberal Democrat leader Nick Clegg described the decision as "a blow for millions of bank customers".
However, the British Bankers' Association welcomed the OFT's announcement and released a statement saying: "The current account market continues to be a dynamic and competitive market and banks continue to take further steps to improve the transparency of charges on statement sheets."
‹ Back
Other Bank accounts News
-
Current account switching falls over past year
Fewer people are switching bank accounts. -
Bank overdraft charges come under fire
Overdraft charges on bank accounts have been criticised. -
Consumers to withdraw £11bn in December
Cash withdrawals to peak in December -
Majority of consumers 'can afford Christmas'
Vouchers and discounts are helping Britons to pay for Christmas.
All Bank accounts News
Other Home Page News
-
Bank withdraws charity credit card scheme
Lloyds Banking Group will no longer offer charity credit cards. -
Smart meters 'will not be compulsory'
Smart meters feed information back to the supplier -
Child SIPPs could turn babies into millionaires
Child SIPPs can provide comfort in retirement. -
Prepaid travel cards 'ideal for gap-year students'
Gap-year students should avoid carrying large amounts of foreign cash.
All News Stories
Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.
Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.
Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.