Bank charge decision delay ‘due to free banking threat’
The Office of Fair Trading's (OFT) delayed announcement on bank charge limits is due to the threat it may pose to free banking, according to a financial research organisation.
While the OFT is investigating bank charges, with the intention of producing results in April, it will not report back until the end of the year.
But Defaqto's head of banking, David Black, has claimed that the probe could lead to an end to free banking in an effort to recoup income for the money institutions.
"Any cap on charges from the OFT would hit their income going forward but would also set a limit on how much they have to refund," he said.
Earlier this month, Defaqto claimed that offset and current account mortgages could provide a way around bank charges - with homeowners saving around £120 a year, according to Easier.
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