OFT report ‘could impact debt management’

The publication of an Office of Fair Trading (OFT) report into the banking industry could potentially increase consumers’ debt management problems, an industry expert has advised.

According to head of banking for Defaqto David Black, the OFT could allow financial providers to place extra charges on products such as current accounts.

Although these charges are likely to be capped, Mr Black reported it could impact upon consumers’ affordability to make secured loan repayments.

He said: "It is difficult to second guess the OFT but my expectation is that they will introduce a cap although for certain items it is likely to be higher than the £12 on credit card defaults."

Mr Black added that the office could also introduce a limit on how much cash consumers can attempt to claim from banks when they believe they have been charged unfairly.

The OFT is set to publish its report into bank charges at the end of 2007.

Earlier this month, a study by Which? revealed that 64 per cent of consumers who have been charged unfairly are yet to reclaim their money.

Interfinancial providing you with breaking debt management news.