Daily Mail - Crackdown on 'rip-off ' bank overdraft charges

Overdraft Charges could be slashed as fair trading watchdogs finally get tough with the banks.

The Office of Fair Trading wants charges on current accounts to be cut - and possibly capped.

Campaigners challenged the OFT to "get off its knees' and support consumers against the banks" high charges.

The OFT has also been battling banks over the high cost of credit card penalty fees.

It argues charges of £25 are illegal because they amount to an unfair penalty rather than a true reflection of the costs to a bank when a customer overspends.

The OFT will announce its final decision on the card charges within a few weeks.

It has now signalled plans to take the same tough line with high overdraft charges on current accounts. A spokesman said: "We expect charges to be cost-reflective and not to cross subsidise other services and that applies to all bank charges."

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