“It is questionable whether these measures will be enough” – Which? response to CMA announcement on banking remedies

Alex Neill, Which? Director of Policy and Campaigns, said:

“The steps outlined today, to provide customers with better information and an improved switching experience, are welcome. However it is questionable whether these measures will be enough, not only to increase competition but also to ensure banks deliver a better service for their customers.

“It is disappointing that the monthly charge cap is not actually a cap and banks will be allowed to continue to charge exorbitant fees for so called unauthorised overdrafts, rather than protect those customers that have been identified as among the most vulnerable.

“The Financial Conduct Authority must now test these remedies and decide if they measure up and will deliver much needed improvements in banking. The regulator should review unarranged overdraft charges in comparison to other forms of credit and crackdown on punitive fees.”