Name of complainant: Consumer Focus
Date of complaint: 31 March 2010
In its super-complaint, Consumer Focus raised a number of concerns, but the main grounds for the super-complaint can be summarised as follows:
The OFT has found that:
To address these concerns cash ISA providers have agreed to:
We have made a number of other recommendations which will ensure that transfers of cash ISAs work better and that there is greater transparency of interest rates. For more information on these, see the OFT's reasoned response to the super-complaint (pdf 912kb).
The OFT found that introductory bonus rates were not causing substantial harm to consumers since the existence of such rates is clear to consumers and they are informed when the introductory bonus rates end.
In the particular circumstances of this case, the OFT consulted on its provisional decision not to make a market investigation reference to the Competition Commission following the publication of its reasoned response to the super-complaint from Consumer Focus on cash ISAs. We received no responses. The OFT has therefore decided not to make a reference to the Competition Commission - see the consultation page for more information.
The OFT conducted a review of industry progress on cash ISA initiatives as part of its ongoing work in the banking sector. The review focused on three main areas: the time taken to transfer cash ISAs; the backdating of interest if the transfer is delayed; and the publication of the interest rate on the face of cash ISA statements. The OFT found significant improvements in all three areas but encouraged the industry to consider ways to reduce cash ISA transfer times further.
Senior Responsible Officer: Clive Maxwell (020 7211 8950, email@example.com).
Project Director: Claire Hart (020 7211 8782, firstname.lastname@example.org).
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