Banks warned over charges

The comment followed the announcement by the Office of Fair Trading (OFT) on unauthorised overdraft and credit card default charges. Emma Bandey, personal finance campaigner, Which?, said:“We are pleased the OFT has insisted that the banking sector justifies what they charge when customers go over their overdraft limits.

“In the six months it may take to conduct the “fact find”, customers could pay up to £2.3 billion from default charges, so we hope that banks provide the necessary information quickly.

“Which? has long since asked banks to open their books to public scrutiny as we feel that default charges should be proportionate and reflect the administration costs involved. They should not be, as they are now, arbitrary figures picked to make the most money out of unsuspecting customers.

“Many people have successfully won money back from banks and consumers should not be put off challenging their banks whilst the “fact finding” is carried out.

"However, they should make sure they don’t get caught out by some recent bully-boy tactics that banks have used to intimidate customers who dare to confront them, such as closing accounts. Which? advises people thinking of taking on their bank to always open a new account elsewhere before mounting their challenge.”