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Share Price: 54.54
Bid: 53.00
Ask: 54.74
Change: 0.00 (0.00%)
Spread: 1.74 (3.283%)
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OFT drops action on bank charges

Tue, 22nd Dec 2009 07:09

The Office of Fair Trading has decided to drop its action to curb bank charges after last month's ruling by the Supreme Court in favour of the banks.'The Supreme Court judgment was not the outcome we had hoped for and was disappointing for many bank customers. Having now considered in detail all the options available to us in light of the judgment, we have decided not to continue what would be a narrow investigation with limited prospects of success," John Fingleton, the OFT chief executive said.He added, however, that the OFT remains 'deeply concerned that the market for personal current accounts is not working well for consumers and does not give banks sufficient incentives to compete.'The OFT statement added that a number of other options are available to secure the changes it wants to see, ranging from voluntary action to legislative change.'The OFT will now discuss these issues intensively with banks, consumer groups and other organisations, with the aim of reporting on progress by the end of March 2010,' it said.The banks and the OFT agreed to stage a legal test case in July 2007, to decide if the OFT had the powers to rule on the fairness of bank charges. This followed rising complaints about the scale of charges for unauthorised overdrafts and a flood of legal claims against the banks.Going overdrawn without agreement, even for a second, can cost £35 and is said to generate £2.6bn of revenue a year for banks and subsidises free banking for other consumers.The High Court and Appeal Court sided with the OFT, but the Supreme Court ruled that the Unfair Terms in Consumer Contract Regulations Act did not give the OFT the power to intervene.It ruled that overdraft charges were part of the price that customers agreed to pay for the package of services their banks provided, and as such were excluded from the scope of the regulations.
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3 May 2023 08:23

UK's Lloyds beats profit forecasts, signals stresses ahead

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3 May 2023 07:52

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3 May 2023 07:03

Lloyds Q1 46% profit jump beats expectations

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2 May 2023 13:35

Wednesday preview: US Fed decision, Lloyds in focus

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28 Apr 2023 21:08

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28 Apr 2023 18:00

Britain's Lloyds to repay AT1 debt as market recovers from Credit Suisse shock

LONDON, April 28 (Reuters) - Lloyds, Britain's biggest domestic bank, said on Friday it will repay an 'Additional Tier 1' (AT1) bond in June, the latest sign of a market recovery after a Swiss decision to write down such debt as part of the rescue takeover of Credit Suisse.

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28 Apr 2023 16:14

Lloyds to repay shock-absorbing AT1 bond in June

LONDON, April 28 (Reuters) - Britain's biggest domestic bank Lloyds said on Friday it will repay a shock-absorbing 'Additional Tier 1' (AT1) perpetual bond at its first opportunity on June 27.

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26 Apr 2023 14:49

Global finance 'giant' Win Bischoff lauded by industry as dies aged 81

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Veteran banker Win Bischoff dies at 81 - Sky News

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Lloyd's expects insurer settlements on planes stuck in Russia -Irish Independent

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Wowed by tech, worried by banks

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at

WOWED BY TECH, WORRIED BY BANKS (0615 GMT)

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