Update on the OFT review of personalised current account charges
On 16 March the Office of Fair Trading published an update on its work with banks to improve the way they deal with unarranged overdrafts.
The OFT points to a number of improvements made since they began working with banks in 2007, including:
- lower average charges for bouncing a payment, down from £34 to £17;
- greater transparency by banks about charging structures; and
- more competition between banks driving down charges.
The OFT believes that these improvements will continue over the next two years: in part because of commitments made by the industry, and in part because of the effects of increased competition in the sector.
The Government and the OFT will closely monitor the progress made by banks and do not rule out taking further action to ensure charges are proportionate, transparent and fair.
For more information see the Office of Fair Trading newsroom (opens in new browser window).
Share
