It never rains but it pours; This news today that banks can b investigated for overdraft charges is yet another headache.
Banks have long run a system where even slightly steping out of line has heavy punishments for customers. This is their price for free banking. When I lived in the US, the price was heavy too and there was no free banking for current accounts either.
Many will welcome the OFT investigation and the enforced changes to bank behaviour that will result. Some things, like £30 letters etc are in need of change. However the principal of those that stay in credit benefiting most will be lost.
Free current account banking will end. High street banking in the UK is not a rip-off (samll business banking is a different matter!) and the profits are similar to other countries. Banks will move the charges elsewhere so there will be a lot of hot air but no much light generated in the next few months.