OFT bank charges study welcomed
April 26, 2007 by admin
Filed under News, News-Banking
The announcement by the Office of Fair Trading (OFT) that it will be launching a study into bank charges and the perceived effects of the loss of free banking has been welcomed.
A number of organisations have come forward to welcome the decision which many hope will change the way in which banks treat their customers.
Citizen’s Advice (CAB) has backed it, saying that bank charges for unauthorised overdraft use punish the most vulnerable in society.
“We welcome the further work being done by the OFT concerning bank charges,” said Tony Herbert from CAB.
“Evidence from local bureaux shows that bank charges have a disproportionate effect on people already on low incomes; one charge may be enough to push them into the red and keep them there, incurring more charges that push them further into debt.
“It’s like running up the down escalator – you’ll probably never reach the top,” he added.
The British Bankers’ Association (BBA) has also given its support to the new study, welcoming the OFT’s realisation that the issue of charges is a complex one.
However, the BBA says that it “continues to believe that the fees are legal”.
