This is Money - Changes afoot for bank charges

Four million bank customers could miss out on refunds of up to £2bn if regulators put a cap on penalty charges.

Campaign groups, lawyers and the Financial Ombudsman Service are concerned that should the Office of Fair Trading demand banks put a cap on fees when customers accidentally go overdrawn, then the amount of refunds for existing overcharging will be slashed proportionately.
The OFT is investigating charges banks impose for going into the red, and for authorising or bouncing a direct debit, standing order or card payment.

Campaigners argue that the charges, which can be as much as £39, are unlawful because they do not reflect the cost of administering the overdraft, and are therefore a penalty. They fear that instead of handing out full refunds for charges, banks could start refunding the difference between the old fee and a new capped fee, which could be around £12.

Marc Gander, founder of campaign website Consumeractiongroup.co.uk, acknowledges that credit card companies had started to offer reduced payouts. He says:

'Don't accept it. You should demand a full refund anyway. It is all just part of their games. We will encourage our users to press on with all their demands for a full bank refund regardless of any cap. That is what they are entitled to.'

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