OFT ditches charges challenge

The Office of Fair Trading (OFT) has said a continued investigation into bank charges would be of “very limited scope and low prospects of success”, as it revealed it will no longer pursue its legal challenge after the Supreme Court ruled against it last month.

It said that it is still concerned about issues such as a lack of clarity and is now seeking to take a fresh approach to the matter, with a consultation now due to take place with banks and consumer groups and new proposals published in March.

People hoping to progress claims to get back money charged by the banks may be left disappointed by the decision, as the loss of such cash could hit their finances, not least those with debt management issues.

Those choosing a bank account may wish to look closely at the way the institution levies charges before deciding what product to take.

Following the news, Liberal Democrat leader Nick Clegg said that his party would “push for a change in the law if necessary” to curb such penalties.

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