OFT moves against bank fees

The Office of Fair Trading (OFT) has indicated that it is to move against large finance providers over the fees they charge for unauthorised overdrafts and missed payments.

It has said that it would like to see the charges banks are allowed to make cut or even capped. Customers can receive multiple £25 fines for going just a penny overdrawn.

The campaign against the fees has demanded that the OFT “get off its knees” and take action against bank charges.

The OFT has already announced that it regards credit card penalties of £25 as illegal as they do not compare credit card costs to fees.

An OFT decision is due within weeks, although the banks have warned that they will fight any cuts that they consider to be excessive.

“The OFT has already established that it believes high charges, which do not reflect true costs, are illegal,” said Stephen Hone of campaigners the Bank Action Group.

“Credit card and overdraft charges are generated automatically by computer,” he told the Daily Mail. “They cost the bank only a fraction of a penny, yet they are charging customers £20 to £30 a time.”

“It should not be up to people like me, ordinary consumers, to challenge the banks, which have huge resources.

© Adfero Ltd

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