Our highest, and newest court, ruled today that the OFT has no power to intervene in cases where aggrieved bank account holders feel that their bank has exploited them over overdraft charges.
A contract was opened between them and the bank when they opened the account and they agreed on things like overdraft limits and penalties. Both parties entered the contract willingly.
Perhaps the account holder forgot to read the fine print, or perhaps it was too fine, (there may be a need for the OFT to make sure that fine print is no t too fine in future.)
There is absolutely no reason why the OFT, which is about free trade, should try to break contractual agreements simply because one party did not read the rules they agreed.
The OFT could do many things to promote competition between banks in an effort to reduce overdraft charges, and certainly if all banks are operating the same charges, but trying to intervene retrospectively is surely not the way.
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