MSE News: No current account competition probe, OFT says

"The Office of Fair Trading tells banks they won't face a competition investigation - for now..."
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No current account competition probe, OFT says

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  • Dr_Cuckoo3
    Dr_Cuckoo3 Posts: 1,398 Forumite
    wonderful news (excellent; great; marvelous) :)
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • ashleyriot
    ashleyriot Posts: 89 Forumite
    First Anniversary Combo Breaker Debt-free and Proud!
    Ok, putting this here now and marked forever on the internet:

    Not much will change and the OFT will demand the Competition Commission's involvement in 2015.
  • Mobius1
    Mobius1 Posts: 10 Forumite
    "The OFT has significant concerns about this market and expects to return to this question in 2015, if not before"

    So there are "significant concerns" and the OFT is just going to brush it aside for a couple of years to see what happens in the meantime?

    Is it me or is that just what they seem to do with pretty much everything they've ever had concerns about? As a department they have absolutely no bite, they appear to lack the impetus to take any action even when there are significant concerns, they constantly drag their heels over everything and in the meantime Joe Bloggs gets taken for a ride, or at least gets a pretty bum deal.

    What's the point? Even when they deign to actually get something done and rule in favour of the consumer, barely anything happens. The big companies found to be evil-doing are slapped on the wrist and continue to operate exactly the same way because - they can.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    The OFT wants the FCA to sort it out. It can't do much itself unless it thinks there's something illegal going on. It fought bank charges through the courts under Unfair Contract Terms and got bested. The Supreme Court sided with the banks, and the banks walked away laughing and started doubling charges.

    I shall worry if the OFT gets involved. It hasn't got the clout to take on the banks.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • Rafter
    Rafter Posts: 3,850 Forumite
    First Post First Anniversary Combo Breaker
    Right decision - and not because it lets banks off the hook.

    Far better that the conduct authority gets its nose into problems with cross selling and level of cross subsidisation and fees.

    Far better that the new industry independent payment council sorts out the rules for cheque and payment processing.

    Far better than mobile phone companies and new entrants provide alternative payment accounts to provide genuine competition to the small number of banks currently in the market.

    However, I do think that someone needs to take a look at the fairness of the new overdraft charges being dreamed up and decide whether they are fair - particularly for 'trapped' customers who cannot move their banking elsewhere.

    Seems to me that beyond a modest, <£5 per month fee, any additional interest or charges should be proportionate to the amount borrowed (ie interest) or any genuine administration costs incurred for failed direct debit or overlimit fees - anything else is just profiteering.

    R.
    Smile :), it makes people wonder what you have been up to.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    ashleyriot wrote: »
    Ok, putting this here now and marked forever on the internet:
    Not much will change and the OFT will demand the Competition Commission's involvement in 2015.
    I make that a dead cert.

    No bank will change anything on its own. There will be no movement until all banks are forced to do the same.

    Sheep will be sheep.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    No bank will change anything on its own. There will be no movement until all banks are forced to do the same.
    I've got no problem with the banks wanting a level playing field. Of course they could do it through trade bodies without waiting to be forced.

    The trouble with regulation and legislation is that their lawyers will immediately be all over it looking for loopholes.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
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