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Monday 08th of September 2008
February 24, 2007

Defaqto warns on bank account charges


by Brian Turner
OFT widens card fee inquiry to debit cards

Research group Defaqto has warned that banks may be set to roll in charges for basic current accounts within two years.

It comes in the wake of investigations by the Office of Fair Trading (OFT) which has seen charges levied for some banking services as unfair.

The report expects that banks will make up for the shortfall by pushing fees into other areas, including basic current accounts.

First Direct has already begun applying fees for customers who pay in less than a specific threshold each month.

However, Barclays has declared it’s intention to stick to the principles of free banking, which is says benefits everybody.

The announcement also coincides with the announcement of record profits by the major high street banks, with Barclays themselves declaring a £7.1 billion profit in 2006.

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