OFT challenges overdraft charges
The Office of Fair Trading (OFT) has lined up an investigation into the charges banks levy on overdraft charges.
Following its recent success in the credit card market, where it card providers have now greatly reduced some of the fees charged, the OFT’s focus will turn to unauthorised overdraft fees, which can be as much as £25. John Fingleton, the chief executive of the OFT, said credit card lenders had agreed to slash their default charges after the organisation had recommended that they should be under £12. “The reduction of default charges on credit cards is great news for consumers,” he said. “By taking an innovative approach to this issue, the OFT has brought about a significant change in one area of the financial services sector. We are now extending that work to inform ourselves about account default charges.”