Banks rapped over current accounts

Despite ongoing efforts to reform the sector, the OFT said comparing the costs of current accounts continues to be challenging and that people lack confidence in the switching process.

The watchdog has made a number of new recommendations but said it is minded not to refer the sector to the Competition Commission for further investigation, although it will revisit the issue in two years time.

OFT chief executive Clive Maxwell said: “Personal current accounts are critical to the efficient functioning of the UK economy.

“Despite some improvements, this market is still not serving consumers as well as it should.”