OFT launches huge study into banking
April 26, 2007 by admin
Filed under News, News-Banking
The Office of Fair Trading (OFT) has announced that it is launching a wide-ranging study into personal bank current account pricing.
This will run alongside an investigation into charges for unauthorised overdrafts and returned items, making it the largest study into personal banking ever undertaken.
OFT officials will look at whether free banking offers customers enough transparency and value, while it will also focus on the fairness and impact of charges.
In addition, and perhaps crucially for the future of free banking, the study will look at the effect on consumers and competition if these type of current accounts became a thing of the past.
“This market study will enable the OFT to consider wider questions about transparency and value in the provision of personal current accounts,” said John Fingleton, chief executive of the OFT.
“This will provide the necessary context for assessing the fairness of unauthorised overdraft and returned item charge before we apply the law in this area.
“Our ultimate objective is a competitive retail banking market in which informed and active consumers drive strong competition and high levels of customer service among banks long-term, with minimum regulatory intervention,” he added.
It is unclear when the study will be completed but its findings could have a profound effect on the banking industry.
