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Comparing cost of current accounts 'virtually impossible'

Current account providers are using baffling charging structures that make it almost impossible to calculate and compare the cost of slipping into an unauthorised overdraft, according to consumer group Which?

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Government 'clear' on current account charges

In response to a Which? study that concluded it is "virtually impossible" for people to calculate and compare current account costs, the Government said it is "clear" that customers must have easy access to clear information on overdraft charges.

It confirmed that a "more robust regulatory system" will be in place soon.

Through the midata initiative the Government is encouraging banks to give consumers information about their spending patterns so they are able to find the best deal for them.

They already have access to free text alerts when a balance falls below a certain level, a free seven day current account switching service, while a more robust regulatory system that will help deliver for consumers will be in place soon.

– Government spokeswoman

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