Banks smokescreen High Court case with changes
08 October 2007
Changes to current account overdraft fees may just be a smokescreen for the Office of Fair Trading's forthcoming High Court test case over so-called 'unfair fees', Which? has claimed.
The consumer group has warned that recent alterations to overdraft fees and interest charges may be an attempt to "muddy the waters" and draw attention away from the legal case.
Personal finance campaigner Phil Jones urged customers to continue to apply to reclaim any charges incurred, despite the recent changes.
The comments come as Alliance & Leicester recently 'dropped' overdraft interest charges in favour of fixed-rate 'fees', while Lloyds TSB and Abbey have introduced tiered charge systems, while Lloyds is also offering a text message alert service to warn customers about to exceed their overdraft limit.
"Some banks are now varying their charging structures following the public outcry over unfair fees, but the jury is still out on whether consumers will benefit," Mr Jones said.
"We welcome changes where charges are reduced and easier to understand, but we suspect some banks may be trying to muddy the waters ahead of their date in the High Court with the Office of Fair Trading."
