UK Office of Fair Trading reports on personal current accounts
The Office of Fair Trading (OFT) has today published the results of its year long market study into personal current accounts (PCAs). The OFT finds that there is evidence of competition in the market, customer satisfaction is high and fees are low on many of the more visible elements of current accounts - such as ATM withdrawals. However, the OFT believes that there is insufficient competition around less visible fees such as charges resulting from customers' having insufficient funds in their accounts to cover expenditure and forgone interest on positive current account balances. The OFT also finds that a significant proportion of consumers believe that it is complex and risky to switch banks. The OFT will spend the coming months engaging with banks and consumer groups to try to achieve greater clarity, transparency and consumer empowerment in this market, either through voluntary change or, if necessary, through other routes, potentially including a reference of the market to the Competition Commission.
Frontier (London) advises HSBC Bank.
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