Money News
The OFT (Office of Fair Trading) has widened its probe into bank charges by announcing a market study into personal bank current account pricing. This comes alongside a formal investigation regarding the fairness of charges for unauthorised overdrafts and returned items.
It says the study will help it consider the current level and incidence of the charges in the broader context of efficiency, transparency, value and consumer choice within personal current accounts. This will be the most wide-ranging study into personal banking to date.
The study follows the OFT's recent fact-finding exercise into unauthorised overdraft charges. Whilst it says it shares public concern about the current level and incidence of charges, it believes any quick-fix solution might have unintended and far-reaching consequences across the sector and for consumers as a whole.
The wider study meanwhile will examine:
1- Whether the widespread provision of so-called free banking delivers sufficiently high levels of transparency and value for customers.
2- The implications for competition and consumers if there were a shift away from the widespread provision of these types of current accounts.
3- The fairness and impact on consumers of the incidence and level of unauthorised overdraft charges, in the context of other charges and any interest payments made for current account services.
The study will be undertaken in consultation with industry, industry representatives and consumer advice bodies, as well as the Financial Services Authority (FSA), Financial Ombudsman Service (FOS) and Government.
26 April 2007 © Moneyextra.com
Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.