OFT: Bank charge judgment disappointing

The Office of Fair Trading (OFT) has expressed disappointment at today’s Supreme Court judgment on unarranged overdraft charging terms.

Previous Court of Appeal and High Court rulings that such fees should be assessed for fairness were overturned.

The OFT said it will now make an announcement next month on whether it will proceed with its investigation into unarranged overdraft charging terms.

It also revealed that it intends to look into the implications of the ruling on legislation and consumers.

A study conducted by the OFT in 2008 raised concerns about unarranged overdraft fees, after discovering that banks gain a third of their retail revenue from fees that are unclear, difficult to understand and not subject to proper controls.

The organisation has outlined plans to discuss today’s judgment with the Financial Services Authority, banks, the government and consumer groups.

Last month, the OFT launched two market studies into pricing and advertising.ADNFCR-2318-ID-19479765-ADNFCR