Updated OFT Q&As

[EXC]

OFT Q&As for August 08

[Amethyst]

Re: Updated OFT Q&As

7. Barclays has recently announced it is going to change its terms and conditions, what does this mean for the test case and investigation?
We are giving the changes made by Barclays due consideration.


14. What are the next steps with the market study?
We have identified a number of issues which we feel warrant further in-depth discussion with the industry prior to deciding on the next appropriate step. We have published a consultation paper setting out these issues and some thoughts on potential measures to address them. We plan to consult with the industry for a minimum of three months during which time we hope to have meetings with interested parties so that all the issues raised in the study and potential measures to address them can be discussed.
We will then collate responses to the consultation and publish a formal summary of these. Depending on the outcome and progress of the consultation we hope to publish a further report early in 2009. Our aim is for a final report containing recommendations the banking industry will then take forwards. However we will also be considering other routes to implement remedies should that not happen.
We would like to see remedies which result in:
• greater transparency in current accounts pricing that will enable active and informed consumers to drive competition amongst banks. This in turn will deliver efficiency in supply and value for consumers
• banks treating consumers sufficiently fairly and well, within a coherent self-regulatory framework or otherwise, that pre-empts the need for further regulatory intervention.
We hope that we can have an informative debate with the banks on the matter of forward solutions and will look to carry on the goodwill gained from the OFT chaired Payments Systems Task Force and Credit Card Comparisons Project.
These have and will lead to positive changes to the UK banking system. Other routes to implement remedies could include:
• changes to banking code
• recommendations to Government
• market investigation reference to the Competition Commission, and
• any action which can be taken under the UTCCRs or other consumer protection legislation.

[Budgie]

Re: Updated OFT Q&As

12.8.08
Wrote to banks with provisional views on fairness

5. When will there be a decision on fairness?
We are continuing to progress our investigation as quickly as possible. In mid-August, we wrote to each of the test case banks setting out our approach to the assessment of fairness and (except for Barclays where a view on incoming terms will come later) provisional views as to the unfairness of particular terms and conditions that impose charges.
At this stage, no bank's terms have been given a clean bill of health and all banks remain under investigation. The purpose of the letters is to start a dialogue with each bank to enable us to reach final conclusions as to whether the terms are unfair, and to identify which issues may need to be resolved in court proceedings (as envisaged in the litigation agreement between the OFT, FSA and banks).

6. Does reference to 'start a dialogue with the banks' mean that the OFT may simply do a deal with the banks behind closed doors?
No. We want to see fair treatment of consumers and are determined to achieve successful resolution for the benefit of consumers, including those with outstanding complaints. Our position is simply that, if we can resolve any concerns we have about the charging terms, (for example, if the banks provided
satisfactory undertakings to the OFT) without the need for further, lengthy, court action, then this would be in the best interest of consumers. This is no different to the approach we would take in any UTCCRs or Enterprise Act 2002 case because the OFT is usually required to seek voluntary resolution before starting enforcement proceedings.

[Amethyst]

Re: Updated OFT Q&As

Hmmmmmmmmmmm re Barclays.

[EXC]

Hmmmmmmmmmmm re Barclays.

Indeed. Still at least we have a firm date for the appeal - 28 October.

An interesting sentance under the heading ''When will there be a decision on fairness?'' is ''At this stage, no bank's terms have been given a clean bill of health and all banks remain under investigation.''