The Guardian - Formal investigation launched into bank charges

Britain's main financial watchdogs have backed away from imposing restrictions on current account charges and the sale of controversial payment protection insurance after a campaign of sustained lobbying by high street banks.

The Office of Fair Trading said it was unable to follow the advice of consumer groups that have argued for a cap on current account charges without an in-depth review. The watchdog said a review was needed after an initial study found "the banking industry is not straightforward and that a more detailed examination is needed".

Consumer groups said the decision left millions of bank customers in the dark about charges levied for overdrafts, bounced cheques and direct debits and would force them to pay billions of pounds in excessive fees before the review is completed.

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