Daily Mail - Crackdown on banks overdraft charges

A crackdown on punishing big bank overdraft charges, which cost the public a staggering £4.6 billion a year, has been signalled.

The Office of Fair Trading (OFT) has launched an inquiry into rip-off charges of up to £39 a time for busting an overdraft limit or bouncing cheques and direct debits.

Currently, someone can be hit with charges of more than £100 for going just £5 overdrawn and bouncing two payments.

The OFT move is likely to lead to a dramatic cut in the charges - slashing them by as much as half - saving consumers billions of pounds a year.

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