The OFT announced on 13 July that they are to undertake a review of the working of the personal current account market in the UK.
This arose from the OFT’s study into the personal current account market first published in 2008 which focused on the following areas of concern:
- low switch levels and real perceived difficulty in switching between PCA providers
- low levels of transparency of PCA charges and other costs, and
- complexity combined with the lack of control of the use of unarranged overdrafts.
As a consequence of this study (and as a consequence of the OFT’s failure to successfully maintain its claim under the Bank Charges Case) the banking industry agreed to take forward a number of initiatives to address these concerns.
The review is intended to establish the effectiveness of these initiatives and whether they have addressed the OFT’s concerns. As part of the review the OFT is also keen to understand the impact of wider changes in the personal current account market since its original report including the structural changes arising from the financial crisis, the regulatory changes which are underway and the work of other organisations including the Independent Commission on Banking Report and the Government’s Consumer Credit and Personal Insolvency Review.
For further details please use the following link: http://www.oft.gov.uk/oftwork/markets-work/asamarketswork/pca-review/