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Current accounts are 'anti-consumer'
16.07.2008
The current accounts market is not working well for consumers, the Office of Fair Trading (OFT) has said.
It argued a lack of transparency and high levels of complexity make it difficult for customers to compare current accounts and shop around for the best deal.
A significant number of account-holders do not know how much they are liable to pay in bank charges, it added.
OFT chief executive John Fingleton said: "Customers lack the information they need to choose the best deal, and this in turn weakens the banks' incentives to compete."
He commented that there is much for banks to do in this area and he hoped they will take action in light of the OFT report.
Consumers were recently advised by a Sainsbury's Bank spokesperson to ensure they shop around for the best savings account for their individual needs.
The organisation's head of savings Helen Cook suggested people should consider whether they are the type of person who is likely to get around to shifting their savings across different rates when they choose where to deposit their funds.
It argued a lack of transparency and high levels of complexity make it difficult for customers to compare current accounts and shop around for the best deal.
A significant number of account-holders do not know how much they are liable to pay in bank charges, it added.
OFT chief executive John Fingleton said: "Customers lack the information they need to choose the best deal, and this in turn weakens the banks' incentives to compete."
He commented that there is much for banks to do in this area and he hoped they will take action in light of the OFT report.
Consumers were recently advised by a Sainsbury's Bank spokesperson to ensure they shop around for the best savings account for their individual needs.
The organisation's head of savings Helen Cook suggested people should consider whether they are the type of person who is likely to get around to shifting their savings across different rates when they choose where to deposit their funds.