OFT takes on the banks again
8 Sep 06
Unauthorised overdraft fees next to come under scrutiny
The Office of Fair Trading has announced its intention to investigate unauthorised bank overdraft fees, having succeeded earlier this year in cutting credit card default charges.
Most card providers have reduced their default charges to £12 after the OFT said they should be capped at that level. Unauthorised overdraft fees can exceed £25 and the regulator believes similar principles should apply.
The British Bankers Association has agreed to co-operate in the investigation, expected to take about six months, but expressed disappointment at the OFT's view. The Association claims that charges are already fair and are often waived where there are genuine mitigating circumstances.