Launched: April 2007
The main drivers of the market study were:
Alongside the market study, the OFT pursued a separate investigation into the fairness of PCA unarranged overdraft charging terms under the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs). This followed a significant number of complaints and media coverage about the level and incidence of unarranged overdraft charges in 2006. In December 2009, the OFT decided not to continue its investigation into the fairness of banks' unarranged overdraft charging terms under the UTCCRs following a Supreme Court ruling that the OFT cannot fully assess the terms.
For more information please see Personal current accounts: UTCCRs investigation and test case.
The OFT July 2008 report found a number of concerns which needed addressing:
Download the OFT1005exec: Executive summary (pdf 146kb) July 2008
Download Personal current accounts in the UK - an OFT market study (pdf 1.2Mb) 16 July 2008
See press release Personal current account market not working well for consumers, says OFT 16 July 2008
Download the annexes of the 2008 market study report:
Download OFT1005con Personal current accounts market study - a consultation paper (pdf 137kb) 16 July 2008
In March 2011 the OFT published a short update on progress in the PCA market. This noted further progress in improving consumer control over the use of unarranged overdrafts. In particular, the Lending Standards Board has led on producing standards and guidance to be included in a revised Lending Code from 31 March 2011.
Download OFT1319 Personal current accounts in the UK - Progress update March 2011 (pdf 714kb)
As part of its ongoing monitoring of the market, the OFT published in September 2010 a short update on progress in the PCA market. This noted progress in the areas of switching, transparency and unarranged overdrafts for the period March to September 2010, as well highlighting further changes the OFT expects to see in the market.
Download OFT1275 Personal current accounts in the UK: progress report (pdf 501kb)
In March 2010, the OFT reported back on the outcome of discussions it had held with PCA providers to address its concerns around unarranged overdrafts. It reported that there are likely to be significant developments over the next two years that will help customers exercise a real choice about whether to have an unarranged overdraft facility and keep better track of their balances. The OFT has also worked with the industry to agree a range of commitments to cross industry initiatives relating to unarranged overdrafts.
For more information please:
The terms of reference for the working groups on 'opt out' from unarranged overdraft facilities and treatment of customers in financial difficulty, as well as progress on the October 2009 initiatives, can be read:
In October 2009, the OFT set out initiatives it had agreed with PCA providers and industry to make PCA costs more transparent and the switching process more reliable and trusted.
For more information please:
For consumer advice, information on specific consumer rights and to make a consumer complaint against a trader please contact the Citizens Advice consumer service on 08454 040506 or visit www.adviceguide.org.uk. Further information about making a complaint about bank charges can be found on the FSA's website.
For all general enquiries and guidance on the OFT's personal current account work, please contact the OFT Enquiries and Reporting Centre on 08457 22 44 99 or email enquiries@oft.gsi.gov.uk. Please be aware that OFT cannot provide advice or assistance to individual consumers or traders.
Consumer Credit Directive
The Consumer Credit Act and regulations are changing as a result of implementation of the Consumer Credit Directive (CCD). The regulations are due to come into force on 1 February 2011. It will however be open to firms to comply before then if they choose. Details can be found on the Department for Business, Innovation and Skills (BIS) website.
Download information concerning the determination made by the Office of Fair Trading in respect of section 74(1)(b) of the Consumer Credit Act 1974 (pdf 62kb)
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