OFT streamlines overdraft investigation

Category: Banking
Date: 4/6/2009

The long-running investigation into the fairness of bank overdraft charges took another turn today as the Office of Fair Trading (OFT) said it is to focus on three banks in particular, for the time being at least.

The investigation will now initially focus on the charging terms of Clydesdale, HSBC and Lloyds TSB, with the OFT saying its aim is to progress the case in the shortest and most efficient way possible.

It has been stressed that any assumption that the OFT is more or less likely to find the terms of the selected banks unfair is unfounded.

The body believes that the outcome of this more focussed investigation will be relevant to the assessment of other banks' terms.

No banks have been given a clean bill of health, with the investigation into the remaining five institutions on hold and not cancelled.

The decision was welcomed by head of campaigns at Which?, Louise Hanson, who said: "We're pleased that the OFT is doing whatever it takes to bring this saga to an end as quickly as possible.

"We welcome its assurances that all banks are still within its sights and we remain confident that the unauthorised overdraft charges of all banks will be found to be unfair."