OFT let consumers down AGAIN on Overdraft Charges

[PocketTheDifference]

Re: OFT let consumers down AGAIN on Overdraft Charges

The OFT has received a super-complaint from Consumer Focus relating to cash ISAs.

More...

How about we send a super super complaint about the handling of the charges case

[natweststaffmember]

Re: OFT let consumers down AGAIN on Overdraft Charges

This is a speech by Philip Collins, OFT chairman, to the Cass Business School. It has been quoted by a few newspapers but he does make reference to the OFT decision on non compulsory regulation:
This is his remarks made specifically under these circumstances:
"Two weeks ago, we announced the results of our work on the charges levied by banks when consumers exceed arranged overdraft limits on their personal current accounts, or “PCAs”. Bluntly speaking, there was a mixed response to our report, including considerable criticism from consumer groups for not taking a harder line, and in particular for not recommending immediate regulation.
It is against this background that I have prepared my remarks this evening. I would like to take this opportunity to discuss our decision on personal current accounts, particularly why we think that regulation, at least now, is not the right option"

http://www.oft.gov.uk/shared_oft/spe...52/spe0310.pdf

[EXC]

Re: OFT let consumers down AGAIN on Overdraft Charges

http://www.oft.gov.uk/shared_oft/spe...52/spe0310.pdf

Yes not happy reading.

He wonders why ''....there was a mixed response to our report, including considerable criticism from consumer groups for not taking a harder line, and in particular for not recommending immediate regulation'' and then goes on to say ''The UTCCRs remain a valuable tool for the OFT. Should this cease to be the case, we would not shrink from seeking changes or clarification of the law, whether at European or national level, as necessary''

In losing the biggest and highest profile UTCCR case in legal history, it HAS ceased to be the case. So where is the clarification of the law?

[natweststaffmember]

Re: OFT let consumers down AGAIN on Overdraft Charges

It is a pity to say that the OFT are out of touch and appear to believe that self regulation works when clearly we all know that it does not. The OFT report from 2006 on default credit card charges SHOULD have told them that. One day they might learn from it.

[enaid]

Re: OFT let consumers down AGAIN on Overdraft Charges

[quote=EXC;155014]Yes not happy reading.

He wonders why ''....there was a mixed response to our report, including considerable criticism from consumer groups for not taking a harder line, and in particular for not recommending immediate regulation''


Because we all knew this was the only way the banks would become fairer with their customers and I think this will be proved time and time again. They know who are the easiest to milk and they will do it again and also take the cream off the top for themselves, knowing full well no one so for can stop them.

[PocketTheDifference]

Re: OFT let consumers down AGAIN on Overdraft Charges

Any chance of posting up some of that, I can't access the link im afraid.

OPB

[Kafka]

Re: OFT let consumers down AGAIN on Overdraft Charges

It is a pity to say that the OFT are out of touch and appear to believe that self regulation works when clearly we all know that it does not. The OFT report from 2006 on default credit card charges SHOULD have told them that. One day they might learn from it.

These are points that I often make.

The OFT always seemed to think that it was OK to charge £12 for everything even though that report requested recalibration to actual costs. It doesn't surprise me that they are not bothered about the banks non-compliance or consumers getting fleeced again, but this also caused mayhem for the courts. After 4 years of continuing mass litigation that is unneccessary, it does surprise me that the OFT have not been forced (or shamed) into doing something.

I said after the release of their recent report that I thought the OFT was now a consultative and advisory body, rather than a proper regulator. This speech adds chilling support to that view, as I though I was a voice in the wilderness.

[EXC]

Re: OFT let consumers down AGAIN on Overdraft Charges

The BBC have published a banking survey which concluded that only 7% of people are likely to switch bank accounts in the next year, suggesting that some 90% are happy with the service they receive.

But is it any wonder when half of those thought that banks were all the same and 48% thought that switching might create too many problems?

BBC News - Bank survey shows customers happy



Bank survey shows customers happy


Very few people switch their current account provider

A high level of satisfaction with the service of the UK's banks has been revealed in a survey for the BBC.
Some 92% of bank account holders questioned had not changed their banks in the past two years and 93% of those people were happy with their service.
Only 7% of people with bank accounts are likely to switch in the next year, suggests the survey of 1,001 adults, of whom 96% had a bank account.
Half of those who had stayed thought all bank accounts were the same.

Improving service
The results of the survey will disappoint the Office of Fair Trading (OFT), which sees switching by customers as a way to make banks improve their service.

What the banking industry has done over the last two to three years in some considerable depth, is asking all its customers, 'What is it that you want?'
Angela Knight, BBA

Earlier this week, the chairman of the OFT, Philip Collins, re-stated the regulator's long-standing view that the banking market was still not working well for current account holders.
He said it needed to be one in which "properly informed consumers manage their accounts and make active choices about which account provider to use, switching where necessary in response to individual and changing needs and new competitive offers".
But the British Bankers' Association (BBA) said the survey showed that the silent majority were happy with their bank's service.
"What the banking industry has done over the last two to three years, in some considerable depth, is asking all its customers, 'What is it that you want?' and has been acting on the replies that it has got," said Angela Knight, chief executive of the BBA.
KEY FINDINGS
92%: not changed their bank account in the last two years
93%: happy with service from their banks
48%: thought that switching accounts would cause problems

Source: ICM poll for the BBC
Of the bank account-holders questioned, 896, or 92%, had not changed their accounts in the past two years, despite the huge wave of bad publicity surrounding bank overdraft charges, the mis-selling of payment protection insurance, and the tens of thousands of complaints that the banks attract each year.
In February, the Financial Ombudsman reported that the top five High Street banks accounted for more than half the 82,000 complaints it had received in the second half of 2009.
Last year, the Financial Services Authority revealed that in the 2006-2008 period, more than nine million individual complaints were made directly to financial firms and more than half of them had been about banking and loans.
Yet when asked why they had not changed banks, most of those surveyed for the BBC said they were happy with the service (93%).
Issues
Other responses pointed to some of the issues that the authorities have been highlighting.
Half of all those who had stayed put said they thought that all current accounts were the same; 48% felt that switching might create too many problems; 38% agreed that there were no better or more appealing current account deals on offer; and 30% said they did not have time to look around.
The small number in the survey who had changed account in the past two years (76, or 8%) cited various factors such as better interest rates or overdraft charges, a lack of local branches, problems with customer service, or introductory offers by other banks.
The OFT believes that more people will switch as they study the value for money of accounts.
"As consumers become more aware of the costs of their account and more confident in switching as a means to get better value, so banks will need to offer more competitive and innovative products and services to attract as well as retain customers," said John Fingleton, OFT chief executive.
The stability of banks in the recession was mentioned by just 36% of this already small sample.
When asked about the vexed question of overdraft charges, which saw the banks win a convincing Supreme Court ruling late last year, 80% of all those in the survey thought that banks should only levy charges on people who went overdrawn without permission.
By contrast, 18% felt that banks should charge all customers a fee for having a standard current account.
With recent evidence of a continued rise in fraud attacks on online bank accounts, 60% of all those questioned in the survey felt online banking was secure, but 33% said this way of handling their money was insecure.
"The numbers show that we are getting big increases in people using online banking, but we have not seen anything like the same increase in fraud," said Mrs Knight.

[natweststaffmember]

Re: OFT let consumers down AGAIN on Overdraft Charges

The 1001 people surveyed is such a huge sample of people and is clearly a significant number of the UK population

[Kafka]

Re: OFT let consumers down AGAIN on Overdraft Charges

I suspect it was an April Fool joke to say that nearly everyone is happy with their banks, like the one with the spaghetti hanging from the trees on Panorama.

[natweststaffmember]

Re: OFT let consumers down AGAIN on Overdraft Charges

FTAdviser.com - OFT to review unauthorised charges in 2012

Kasia Reardon, spokesman for the OFT, said: "We are not launching an investigation. We will do a general follow-up on the personal current account market as a whole in 2012."

[PocketTheDifference]

Re: OFT let consumers down AGAIN on Overdraft Charges

ha 2012, late in the day to check it then, mind you will probably mount to nothing, or they will find somthing cause a huge debate amongst us and then withdraw leaving us hanging again.

[natweststaffmember]

Re: OFT let consumers down AGAIN on Overdraft Charges

ha 2012, late in the day to check it then, mind you will probably mount to nothing, or they will find somthing cause a huge debate amongst us and then withdraw leaving us hanging again.

The bit in bold is exactly what it says, it is a general follow up and means absolutely nothing to consumers to be honest.

[PocketTheDifference]

Re: OFT let consumers down AGAIN on Overdraft Charges

Ive been reading a comment or comments made by Vince Cable, Who clearly states the Banks are and have been ripping us off, whos in charge of this country again?? if they are saying it blaitantly then isn't it obvious?

[FCC]

Re: OFT let consumers down AGAIN on Overdraft Charges

The man at the BBC's Moneybox stated that " if you experience any problems with the banks and credit industry you should complain the the OFT and they will take up your complaint on your behalf! " so there!!. If the BBC says it then it must be right DER!!