September 08, 2006	Friday	Sha'aban 14, 1427

LONDON, Sept 7: Britain's consumer watchdog will look at fees that banks charge customers who go overdrawn, it said on Thursday, after winding up a months-long probe into penalties for the late payment of credit card bills.

The Office of Fair Trading told credit card companies in April to slash penalties for the late payment of bills and said the principle of that decision applied to other charges such as those for unauthorised overdrafts, store cards and mortgages.

At the time, investment bank Credit Suisse estimated UK banks generate about 2 billion pounds ($3.77 billion) of revenue from penalty charges across bank accounts and credit cards.

The majority of banks and issuers have since cut their credit card penalty fees and the

OFT said on Thursday it thought no further intervention was warranted.

But it said the broad principles applied to the retail banking area, and said it would “undertake further work on the application of these principles to bank current accounts”.—Reuters