This is Money - Q&A: What next for bank charges?

The story so far

Last year, after an investigation into the industry, the OFT imposed a £12 cap on credit card default charges and said the principle had a 'read across' to current accounts.

In September the OFT announced that it would be formally investigating the penalty charges being imposed on current accounts and it would make an announcement in March or April 2007.

Yesterday, it admitted it needed more time to thoroughly investigate the issues and a wider study was needed. The OFT says it will announce at the end of April the scope of the wider investigation. A definitive response, including how much it thinks banks can charge to deal with defaults, will be given at the end of the year.

Can I still reclaim charges?

Absolutely. The move has caused some confusion among consumers but for those who have lots of charges to reclaim, this will give you a bit more time to do it with the least possible hassle. And even once the OFT has made a decision, it won't be binding until it is made law, so even then you will probably be able to continue reclaiming for some time afterwards.

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