A market study into personal current accounts has been launched by the Office of Fair Trading (OFT) as part of its in-depth study into retail bank pricing announced by the OFT in March 2007.
As well as unauthorised overdraft charges, the OFT will examine whether “free banking” delivers sufficiently high levels of transparency and value for customers; and the implications for competition and consumers if there were a shift away from the widespread provision of this type of current accounts.
Rollits associate, Tom Morrison, says banks have been under the OFT’s spotlight for some time, so it was inevitable they would begin fighting back.
“If a cap is imposed on personal current account charges, many banks may decide to withdraw “free” personal banking. The OFT is keen to avoid a situation where it is accused of effectively inflicting the end of free banking on the millions of customers who do not need, and who do not wish to open, a current account which charges a monthly fee.”
Some, he says, feel the end
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