Personal Current Account Banking Services in Northern Ireland Market Investigation

Personal current accounts (PCAs), defined as ".. an account, marketed to individuals not businesses, which provides the facility to hold deposits, receive and make payments (cheques and debit cards) and use automated teller machine (ATM) facilities and to make regular payments (direct debit and standing orders)" are the most widely-held personal banking product in Northern Ireland. This investigation follows a super-complaint to the Office of Fair Trading by Which and the General Consumer Council for Northern Ireland. The Commission concluded that there are three features of the relevant market, either alone or in combination with each other, that prevent, restrict or distort competition in connection with the supply of personal current accounts in Northern Ireland, and hence that there is an adverse effect on competition (AEC). The three features identified banks have unduly complex charging structures and practices; banks do not fully or sufficiently explain their charging structures and practices; customers generally do not actively search for alternative PCAs or switch bank. A comprehensive package of remedies is offered.