Bank charges: Banks should offer accounts that cant go overdrawn

1215PM GMT sixteen March 2010

Comments 6 |

Unveiling the recommendations on the destiny of bank charges, the consumer watchdog pronounced it would similar to to see options for those who do not wish unarranged overdrafts as well as larger preference surrounding charging structures.

It additionally wants improvements on the turn of fees for unarranged overdrafts, but the OFT suggested that charges have already been entrance down. Charges for "bouncing", levied when a bank refuses to have a payment, have depressed from an normal of �34 in 2007 to around �17.

OFT drops astray bank charges box Bank charges what next? Bank charges statute sees business lose �2,000 each Bank charges Q&A Bank charges statute timeline Bank charges Customers a step nearer to refunds

Customers who go in to unapproved overdraft have seen the normal penalties ease behind from �30 per contract in 2007 to around �22, according to the OFT.

The banks have welcomed the inform nonetheless consumer groups have criticised the OFT for not receiving a tougher stance.

Self-styled bank charges hold up Martin Lewis, of MoneySavingExpert.com, called the OFT request "flaccid" and pronounced the watchdog had "wasted a chance" to urge the incident for consumers. He combined "After 3 years all it"s managed to do is set up nonetheless an additional exploration in to most appropriate make use of and told us it will guard the banks for an additional dual years, afterwards may be take action."

John Fingleton, the OFT"s arch executive, pronounced "The OFT"s spotlight on personal stream accounts has triggered estimable changes, that are still underneath way. We hold that the commitments concluded by the industry, along with changes by particular banks already done or approaching in the subsequent dual years, should lead to a marketplace that functions improved for consumers.

"We will go on to closely guard the banks and will recur the need for action, together with legislation, if they destroy to broach these changes.

He combined "Our finish idea is a stream comment marketplace where banks have meaningful, real-time report accessible to customers, giving them some-more capability to carry out their balances and review opposite banks" offerings. Account holders afterwards need to make use of this report to actively conduct their accounts and to switch banks when they feel they are not removing the most appropriate deal."