Probe launched into personal account banking charges

Fri, 27 Apr 2007

Banking customers who feel they have been overcharged for services may be interested to learn that the Office of Fair Trading has launched an official investigation into current account fees.

Among several issues to be explored, the organisation intends to question whether the frequency and level of charges for going into an unauthorised overdraft are set unreasonably high.

Meanwhile, the controversy over whether free banking in its present format is transparent enough for banking customers will also be probed.

John Fingleton, chief executive of the Office of Fair Trading, explained the aim of the investigation.

"This market study will enable the OFT [Office of Fair Trading] to consider wider questions about transparency and value in the provision of personal current accounts," he said.

"Our ultimate objective is a competitive retail banking market."

Many banking customers have expressed resentment at being asked to pay upwards of £20 after falling temporarily into the red without informing the banking institution beforehand.

In recent months, the rising profile of the issue has led to many consumers downloading formal complaint templates from financing pressure groups, which demand return of the fees.

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