- 26
- Apr
The Office of Fair Trading (OFT) has announced it is to investigate pricing levels within current account industry.
Under the move, the office will determine whether consumers are receiving unfair charges for going into their overdraft, which could in turn constrain their attempts at debt management.
Citizens Advice spokesperson Tony Herbert claimed that bank charges particularly target some of Britons lowest-income households, potentially affecting their ability to make Debt Consolidation payments.
He said: "One charge may be enough to push them into the red and keep them there, incurring more charges that push them further into debt.
"Its like running up the down escalator - you’ll probably never reach the top."
The OFT study will also analyse what the implications for consumers may be if free current accounts were to become less available.
Earlier this year, consumer watchdog Which? advised consumers who believe they have received unfair charges to attempt to reclaim their money, which could consequentially aid their money management.
Interfinancial providing you with breaking debt management news.
