The City watchdog is to scrutinise overdraft charges, but it may be too little, too late

It’s about time. The city watchdog has announced it will take action to improve competition in the current account market.

Let’s face it, current accounts are a bit rubbish, aren’t they? Many offer 0 per cent interest no matter the balance, overdraft charges can be extortionate, late payment fees are astronomical and, despite years of industry pleas, switching accounts is still seen as a pain in the neck.

To add to customer woes, back in August the Competition and Markets Authority (CMA) published a number of recommendations aimed at shaking the retail banking industry, including ordering banks to share customers’ information with third parties from 2018 to make it easier for them to find better deals. The report ran to 700 pages and cost £5 million. But the proposals were roundly criticised as lacking teeth and, in general, not going nearly far enough.