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The OFT has issued its long awaited report and consulation into current accounts terms and conditions, and funding including bank charges

 

Download Personal current accounts in the UK - a market study (pdf 1.2 mb)

Download the executive summary (pdf 146 kb)

 

the report found:

 

we believe the ability for the market to function well has become distorted in three

ways:

 

• first, there seems to be a substantial cross subsidisation from those consumers who incur

insufficient funds charges to those who do not; and to a significant extent from ‘vulnerable’,

low income and low saving consumers, to higher income, higher saving ones

 

• second, the extent of this cross subsidisation means there is a substantial misalignment

between the banks’ revenues and their costs on many of their products and services. This

may lead to inefficiency through under or over consumption of services by consumers, and

 

• third, the lack of consumer awareness and switching on the less visible elements provides

banks with little incentive to compete on them. This may also have an impact on longer term

productivity within the banking sector. Without competition in these areas, banks have lower

incentives to create new and innovative services.

 

it also found that bank charges revenue amounts to 30% of current account income, and that the APR of an unauthorised overdraft amounts to an average of over 200% when you include charges.

 

As part of CAG YOU are a STAKEHOLDER. I expect CAG intends to be review the report and looking at the Consultation Paper, and will make a contribution to the consultation.

 

Therefore, it would be useful if YOU put your views on this thread, so CAG can help express YOUR opinion and you can have YOUR say on the findings.

Edited by tomterm8

i will be off site for the next month or so. if you have any problems, feel free to report the post so a moderator can help you.

 

I am not a qualified or practicing lawyer.

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Tom there appears to be a variety of opinion in different threads here;

 

http://www.consumeractiongroup.co.uk/forum/bank-charges-consumer-issu

es/

 

 

Whilst the findings are not totally unexpected-the figures involved probably certainly are.

Marc reported on this as the news broke this morning,doubtless there will be some response to it once its been fully digested,along with the responses from both the Banks and their regulators.

Edited by MARTIN3030

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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The banks did not get an advanced copy of the report prior to publication.


.

FSA Waiver on Bank Charges:http://www.fsa.gov.uk/pages/Doing/Regulated/Notify/Waiver/pdf/dir_quart_0709.pdf

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Guess there was some busy boardrooms this morning.

But I saw the Banking regulators were quick to try and offer a defence.


Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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What were they defending btw?


.

FSA Waiver on Bank Charges:http://www.fsa.gov.uk/pages/Doing/Regulated/Notify/Waiver/pdf/dir_quart_0709.pdf

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