30 March 2007
Following weeks of pressure from consumer action groups, the Office of Fair Trade (OFT) has announced its decision to mount an investigation into the fees being levied at current accounts customers.
The regulator said that while it shared consumers' fears about the high level of charges being thrown at current accounts holders, it would be impossible to impose a capped rate - as it has done with credit card fees - due to the fact that each bank and building society conducts its current accounts differently.
However, a thorough investigation has been agreed, with the aim of working out how charges could be made fairer without account providers simply adding new fees elsewhere.
John Fingleton, the OFT's Chief Executive, told The Guardian that a "quick-fix solution" was not the answer and would only provide a short term benefit. He also warned that such a decision could result in "unintended and far-reaching consequences across the whole sector and on consumers as a whole".
OFT's announcement has been welcomed by Citizens Advice and price comparison and switching website uSwitch.com.
Director of Financial Services at uSwitch.com, Nick White, added: "More now than ever before, consumers should be keeping a very close eye on the small print and the correspondence they receive from their bank."
If you're not getting what you want from your existing provider, switching to better banking is easy and only takes a few minutes. Visit uSwitch.com and make an accurate and impartial comparison of all UK current accounts. Apply online and switch today.
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