Competition and market authority: Personal current account consultation

In summary our response sets out the following:

• CAS support the decision to refer the personal current account market for a full investigation by the CMA
• CAS is concerned that Scotland is the least competitive part of the UK for personal current accounts
• We reject the view that accounts receiving less than £500 a month can be classed as inactive as this ignores people on very low incomes which can be as low as £230/month or even less
• Our figures support the findings that there has been a slight increase in complaints regarding current accounts in the last six months
• The need for access to branches is highly important to consumers but also a barrier for new firms’ entry into the market. The development of local ‘banking centres’ or utilisation of the post office network may provide a solution for rural areas
• Problems with opening accounts presents the biggest demand for advice at Scottish CAB within personal current account issues
• While advice on debt relating to overdrafts has fallen this year, issues with default charges relating to overdrafts have risen
• The current market makes it impossible for consumers to shop around based on the best deal for overdrafts, a new simplified one fee rate should be brought in for all accounts to allow easy comparison