OFT climb-down over bank charges 'inevitable'

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OFT climb-down over bank charges 'inevitable'

Tue 22nd Dec 2009

The decision by the Office of Fair Trading (OFT) not to pursue reclaiming bank charges for consumers following the Supreme Court's ruling is inevitable, according to moneysupermaket.co.uk.

Kevin Mountford, head of banking at moneysupermarket.com said that while the ruling was a blow to all the people who cannot reclaim their charges, the case did force banks to reduce how much they were taking from their customers.

Some consumers may still choose to take their complaints further to the Financial Ombudsman.

However, for most customers, it is about ensuring that they stay within their overdraft limits to prevent receiving any additional fees. Consulting the bank to set up an authorised overdraft can prevent charges from being levied.

Changing banks can also be a good way to avoid charges, as not all financial institutions charge the same rates when their customers become overdrawn.

Consumers who are looking to take out a loan are facing difficulties at the current time, with eight of the nine largest high street banks only offering loans to their existing customers, according to moneysupermarket.com.

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