The OFT and bankcharges
July 14th, 2008 | by admin |Banks are still under fire from the Office of Fair Traiding over bankcharges and current account costs, the current unaranged borrowing fees and late payment charges are still are still being looked at in the high courts. The OFT claims these fees are Unlawful.
You can now reclaim credit card latepayment fees and penalty charges, it was decided these fees were excessive.
Current accounts generated revenues of £8.3billion for the banks during 2006, the OFT says this was more than they made from savings accounts and credit cards combined. An OFT study revealed 81% of this revenue came from two sources.
Charges for having insufficient funds generated £2.6billion, while net credit interest income brought in £4.1billion.
The OFT said 12.6million current accounts, nearly one in four, incurred at least one charge for having insufficient funds in 2006, with 1.4million people paying more than £500 a year in charges.
The Office of Fair Trading is threating that banks will be referred to the Competition Commission if they fail to improve.