Mark Adams, Wednesday July 16, 2008
Government consumer watchdog the Office of Fair Trading has today slammed UK banks for failing current account holders - and reaping more than £6bn in profits through “opaque” terms and conditions. Find out if you’re getting a raw deal - and how to switch to a better bank
UK consumers are being let down by the big banks, according to a major survey published today
into the current account market. The Office of Fair Trading (OFT) has found that “significant
numbers” of consumers don’t understand how much they are paying in charges or how those charges are
calculated.
What’s more, the report claims that the complexity of each individual current account makes
it hard for consumers to compare the market and switch to a better deal.
The UK current account market is worth £8bn - and our banks earned £6.7bn last year in credit
interest income and overdraft charges. Yet OFT Chief Executive John Fingleton has hinted that banks
are boosting their profits at the expense of confused consumers.
"Customers lack the information they need to choose the best deal, and this in turn weakens
the banks' incentives to compete. There is much the banks could do to improve how the market works,
and we hope this report will encourage them to take steps to do so in the near future," he claims.
Switch
to a better current account
Poor returns
Even though banks are anxious for cash assets as the credit crunch dries up other sources of
income, many current accounts still offer a paltry 0.1% interest on balances in credit. Yet by
shopping around for a better deal, you could earn as much as 10% on your daily cashflow.
And switching banks is easier than you think. We show you how to find the right bank account
for your needs.
