Click on the advert above to visit the company web site

Product category: General insurance
News Release from: uSwitch | Subject: Insurance
Edited by the Insidemoneytalk Editorial Team on 30 April 2007

uSwitch.com responds to the OFT
announcement of a market study into
personal current accounts

Following the Office of Fair Trading's (OFT's) announcement of a market study into personal current accounts, alongside a study in the fairness of default charges, Mike Naylor at uSwitch.com comments

"The scope of this investigation is huge and it's reassuring to see the OFT is taking such a considered and in-depth approach to finding a long term solution and not just a short term fix In order to maintain a level of stability within the banking industry, it's really important to look at the bigger picture as the knock on effect of the decisions made could be phenomenal

We've already seen the fallout from the credit card investigation and customers are already paying a really high price for a cap on fees that they may or may not have ever been subject to.

However, the OFT cannot stop the banking industry picking up this 'claw back baton' and despite all their good intentions, it's inevitable that this will happen." "Recent research from uSwitch.com has shown that almost 19 million people have been hit with a total of 159 million chargeable events, generating an income of £4 billion for the banks.

A cap on default banking charges by the OFT is a very likely outcome from their study and as a result, the end of 'free banking' as we know it, is nigh.

Yet, our research has found that eight of ten customers (83%) would leave their bank if they decided to introduce a monthly or annual fee for a standard current account.

We are in little doubt that the introduction of banking fees will be one of the biggest triggers of current account switching that we've ever seen.

"Our advice to consumers that have already been hit with bank charges is to act now while they can still re-claim the money.

Our recent research also highlights that £2.12 billion5 is sat waiting to be claimed by consumers.

More now than ever before, consumers should also be keeping a very close eye on the small print and the correspondence they receive from their bank.

With this latest announcement from the OFT, banks will continue to claw back any lost revenue streams in anticipation of the outcome of this investigation.

By voting with their feet, customers can make sure they are not being ripped off by underhanded revenue generating tactics which simply add to banks' profits." For more information visit www.uswitch.com or call 0800 093 06 07.

• uSwitch: contact details and other news
• Email this article to a colleague
• Insidemoneytalk Home Page

Search the Pro-Talk network of sites