Banks make agreement following pressure from OFT

Following continued pressure from the Office of Fair Trading the banking industry in the UK has agreed that it will not only make current account charges clearer for customers but will also make it easier for customers to switch to another provider should they wish to do so.

This comes after two damaging reports were released highlighting how unclear banks were with regards to information on account charges.

Banks have now agreed that they will provide an annual summary of account charges for customers to help make things clearer. The new measures that have been agreed to by the banking industry are likely to come into play in around 2011.

Banks are also going to be making it easier to move direct debit payments from an old account to a new one, thus cutting out much of the time and hassle involved for the consumer.

An official from the OFT said that the new measures would improve consumer confidence and make it easier for them to get better value from their banking service.

He said: “As consumers become more aware of the costs of their account and more confident in switching as a means to get better value. Banks will need to offer more competitive and innovative products and services to attract as well as retain customers.”

At present many people think that it is too much hassle to switch accounts, and tend to stay with their existing bank whether they want to or not.

Kevin Brennan, the Consumer Affairs Minister, said: “These new guarantees are a step in the right direction and represent a real boost for consumers. People deserve an upfront and clear service from their bank and these measures are an important part in delivering that.” The British Bankers Association added: “The industry tries to make moving from one bank to another easier for customers by arranging for regular payments to come from the new account and banks compensate customers if the switching process goes wrong where the bank is at fault.”

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