Thread: Impending OFT report out soon - seems not!!

The Office of Fair Trading: OFT announces 'quick fix' on bank charges will disadvantage consumers

See particularly Note 2.

OFT delays bank charge decision | This is Money

Seems like it's business as usual then!

THAT is what the banks have been holding out for?

They gotta be please with that.....

Not really, it just means they won't announce some plucked-from-the-air cap now as they did with credit cards!

It's hard to convey sarcasm in a post!!

There is an arcticle on this on the BBC website, this bit is interesting:

But the OFT wants to make sure that if such charges are reduced they do not just lead to higher charges elsewhere.

BBC NEWS | Business | Study launched into bank charges

Bit on bank charges on BBC News 24 right now!

Below is the British Banking Association's response to today's OFT anouncement. Never too slow to pat themselves on the back, they must be very pleased indeed.

No doubt they'll be opening something expensive over at Old Broad Street to toast yet another year of 30 odd quid penalty charges.



BBA Statement in Response to the OFT Annoucement on Bank Fees

29/03/2007


The BBA notes the fact that, following our six-month collaborative fact-finding exercise, the OFT acknowledges that the issue of bank account fees is more complicated than it first thought and that the application of the legal principles to overdraft fees is not as straightforward as it was for credit card charges.

The OFT has announced it will need to conduct a more detailed study of retail bank pricing and current account fees in the UK. We welcome the OFT comments that the UK retail banking market performs well in many dimensions, especially relative to international norms.



For further information, please contact:
Brian Capon, Head of media relations (020 7216 8810 brian.capon@bba.org.uk )


Notes to Editors:
1. We understand the OFT intends to issue the terms of reference for its investigation in late April and we look forward to engaging in a dialogue with them.

"...and that the application of the legal principles to overdraft fees is not as straightforward as it was for credit card charges."

Their words, nobody else's! There's nothing ambiguous about overdraft fees - they are simply a money-making ripoff and unlawful!!

Has anyone noticed that upon reading the various articles on the OFT delay, consumers have now been given more time to claim ALL of the charges and not just the difference from the OFT's "fair" amount. Although we would still claim the whole amount as normal anyway.

Originally Posted by crfx250

I think the very least the OFT could have done was put a temporary £12
cap on charges until their more 'in-depth investigation is concluded.

It seems clear to me that the banks are exerting too much influence over this, and the OFT is paying too much attention to the banks point of view.

And I wonder how many consumers or consumer groups have been consulted during the course of this exercise? My bet would be zero.

crfx250

Some arbitary sum such as £12 would have actually been a worse outcome, as this would have given the Banks the impression that the OFT was condoning such a figure as being justified. They would then have used this as leverage to fight claims harder.

The Delay and announcement by the OFT works much more to our advantage, as it retains our right to claim ALL of the charges back.

As Public pressure increases over the course of the next 12 months, the OFT will, I am sure, feel obliged to consult bodies other than the Banks in the compilation of their report.

Originally Posted by photoman

The Delay and announcement by the OFT works much more to our advantage, as it retains our right to claim ALL of the charges back.

Unfortunately though, it only works to the advantage of those in the know.

Originally Posted by photoman

crfx250

Some arbitary sum such as £12 would have actually been a worse outcome, as this would have given the Banks the impression that the OFT was condoning such a figure as being justified. They would then have used this as leverage to fight claims harder.

The Delay and announcement by the OFT works much more to our advantage, as it retains our right to claim ALL of the charges back.

As Public pressure increases over the course of the next 12 months, the OFT will, I am sure, feel obliged to consult bodies other than the Banks in the compilation of their report.

I think that's a valid school of thought but as far as I'm aware the banks
are not generaly fighting credit card claims on the basis of the OFTs £12 figure.

And at any point the OFT puts their case foward, it will never affect our
rights under law.

Re your last point, i'd strangely enough just finished typing out an FoIA
request to the OFT on that very subject:


From: xxxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx

To: Jennifer Slocombe
CPE Group
Office of Fair Trading
2-6 Salisbury Square
London
EC4Y 8JX

31/03/07

Freedom of information request

Dear madam

I wish to make a formal request under the freedom of information act.

This request, unlike my previous rejected effort, I suspect, would be simple, quick and inexpensive to fulfil. Also, although a layman in this area, I cannot imagine that any exemptions that could be used against it. Alas, I’ve little doubt that you could.

Please find enclosed a cheque for £600. Please let me know if you require any additional fee.

Information requested

(All the information relates to your recent initial review of bank current account charges)

1) The total number of banks and industry bodies consulted to date in consideration of the review

2) The total number of people from the banking industry consulted to date in consideration of the review

3) The total number of consumer groups consulted to date in consideration of the review

4) The total number of consumers consulted to date in consideration of the review

5) Err.. that’s it


Regards

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