Bank charges to push up switching rates
High fees are expected to cause larger than usual numbers of people to switch their current accounts between banks in the coming months, a price comparison expert has claimed.
Sean Gardner, made the prediction as his website published research showing the average one-off overdraft mistake costs £44.98.
The Office of Fair Trading (OFT) has capped credit card charges at £12 but no such barrier has been put in place for current accounts, where research shows total fees range from £25 to £67.
Although a test case challenging the legality of the bank charges is underway, an outcome is not expected to be reached until next year.
“Some people might think that their bank charges are on the verge of being reduced or scrapped following the recent OFT investigation and the glut of claims. But the court case continues and the charges remain,” Mr Gardner explained.
“With fees as high as they are, and with uncertainty around charges likely to remain well into next year, we anticipate an even greater number of people will swap banks in the coming months,” he conclu