Banks to provide 'more clarity' on account charges

UK banks have agreed to provide clearer information to customers regarding current account charges, and to introduce measures which will make it easier for them to switch accounts.

Under the new measures, which are expected to come into force by 2011, banks will provide an annual summary of account charges, including information on how much customers have been charged for services such as overdrafts.

Bank charges will also be listed more prominently on monthly statements, and banks will make it easier to move direct debit payments to new accounts.

The changes follow a previous report from the Office of Fair Trading (OFT), which criticised the complexity of the information given by banks to their customers.

John Fingleton, OFT chief executive, said that the measures will help to improve customer awareness, and allow individuals to compare the benefits of different accounts in order to obtain better value for money.

'Banks will need to offer more competitive and innovative products and services to attract as well as retain customers', he commented.