Calls for OFT to limit bank fees
More calls are being made for card lenders and banks to make the fees they charge fairer and more lenient.
The OFT is preparing to publish its recommendations on the level of late charges and penalties that banks and lenders levy, and industry experts have urged it to show some backbone when standing up to banks.
Lisa Taylor, analyst at moneyfacts.co.uk, has advised that the OFT needs to be stern when it comes to putting a cap on late or missed payment fees, as the current high fees are only worsening the country's debt problem.
She suggests that the banks may well claim that high fees are a deterrent to people exceeding their overdraft limits, and therefore are an aid to solving the debt problem.
However, Ms Taylor points out: "Employing and training more staff to deal with customers in financial difficulty, with the aim of managing the problem before it becomes an uncontrollable beast.
"Imposing more debt by the way of fees will not solve the problems faced by these consumers."
Currently, consumers are paying up to £25 for a late payment to their credit card and £35 or more for an unpaid item, in addition to charges levied on exceeding one's overdraft limit.
Prior to the OFT's recommendations, Amex, HBOS and MBNA are the card providers who charge the most - £25 - for late payments.
Halifax is again at the top of the pile when it comes to unpaid item charges, with £39, closely followed by the Natwest with £38.
Both Lloyds TSB and Barclays charge£35 for unpaid items.
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