"This OFT report highlights several of the key problems with the UK current account system.
"It shows the have-nots are subsidising the haves. While we all have responsibility to take care of our finances, those with low incomes are paying more unauthorised overdraft fees while the better off benefit from free banking.
"But we are all suffering through a lack of competition and clarity of fees.
"Our greatest fear is that open competition means more fees for accounts, a move banks are already making as the prospect of caps on unauthorised overdraft fees grows.
"The OFT can wave the stick of regulation, but I think no-one will be hit.
"More simplicity is needed in the market, now overburdened with dozens of types of accounts offering variations of fees, charges, interest and added extras. It is little surprise consumers cannot compare deals.
"Banks need to lay out more simply what fees they charge, when they charge them, what interest rates are on overdrafts and balances to ensure we can compare.
"For too long they have been hiding behind complex charges and relying on consumers' unwillingness to move, claiming customers were showing loyalty."
Ends
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Notes to Editors:
For further information, please contact Daniel Barnes, editor myfinances.co.uk, on 0207 517 2268 or daniel.barnes@
http://www.myfinances.co.uk is a leading personal finance website, providing news and views on the issues affecting your wallet.
