UK OFT leaves overdraft ruling to the banks

Whilst the customer may still incur hefty fees if they get overdrawn, today's ruling expects banks to allow customers the 'opt-out' from the scheme leaving them declined whenever they go overdrawn.

The ruling brings to end a long-running saga, which saw thousands of customers send out letters to their bank demanding the overdraft charges back.

These customers will all be left disappointed as the OFT's ruling does not give the banks any compulsory requirements to do so.

"Today's announcement relies on the banking industry to fix the problems it has created. This settlement still leaves consumers vulnerable, with no firm commitments from banks." said Consumer Focus, an organisation that campaigns for a fairer deal for consumers.

Meanwhile, the OFT said that banks had already reduced fees from an average of £34 in 2007 to £17 these days.

Banks are also charging on average £8 less for transactions processed while the customer is in an unauthorised overdraft from £30 to £22.