Bank customers in Northern Ireland should get a better deal after the Competition Commission this week ordered major improvements to personal banking accounts. The changes are likely to become UK-wide as a result of a review of the banking code currently being carried out.

A final report by the commission followed a lengthy investigation into banking practice in Northern Ireland of personal current accounts. It found that competition was limited by the banks' unduly complex charging structures and practices, their failure to adequately explain them and customers' reluctance to switch to another bank. The banks have until next year to comply.

The legally enforceable ruling was the result of a "super complaint" against the banks taken by the Consumer Council, which accused the banks of ripping off their customers and complained that account holders in Northern Ireland did not get as good a deal as their counterparts in other parts of the UK.

The report is applicable to virtually all banks operating in Northern Ireland but is particularly focused on the big four - Ulster Bank, Danske's Northern Bank, Bank of Ireland and AIB's First Trust - which together control about 75 per cent of the near £2 billion personal account market in the North. All four have sister operations in the South. The Competition Commission said the banks must make major improvements to their personal current accounts. These include:

providing better and clearer information to customers to help them understand personal current account services, charges and interest rates;

giving customers at least 14 days' notice before deducting charges and interest from their accounts;

improving the switching process to ensure customers who switch banks do not incur costs.

Christopher Clarke, chairman of the inquiry and a deputy chairman of the Competition Commission, said the measures would ensure a better deal for personal current account customers in Northern Ireland.

"Customers will be in a much better position to choose which personal current account and which bank best suits their own personal circumstances," he said. "An increase in switching bank accounts - or an increase in the possibility of doing so - will incentivize banks to provide better terms and clearer conditions."

Mr Clarke said that during the investigation the commission had seen a number of encouraging changes made by the banks, and a significant increase in "fee-free" accounts. But he stressed: "Even so, we believe there is still plenty of room for improvement." - (PA)