Northern Ireland's big four banks today faced investigation by the Competition Commission over allegations that they rip off personal customers with high charges.
The Office of Fair Trading (OFT) said it would decide in five weeks whether to press ahead with a market investigation reference to the Commission after finding evidence that the banks appeared to restrict competition on services they offer current account holders.
The banks were accused of ripping off customers in a complaint made to the OFT last November by Which?and the General Consumer Council for Northern Ireland.
In a damning response the OFT said it had identified features of the personal current account (PAC) market in Northern Ireland "which appears to restrict competition and which may warrant further investigation by the Competition Commission" (CC).
The OFT added that it had "found evidence of behaviour among the four leading providers of PAC services leading to, or demonstrating, weak competition between them".
Its findings against the Northern Bank, Ulster Bank, Bank of Ireland and First Trust claimed they imposed a number of charges when customers are in credit and overdrawn that are not found in the rest of the UK - and there are no offsetting advantages such as higher interest payments on positive balances.
The OFT also said there was evidence of parallel pricing behaviour among them, and of price leadership - where one firm in a market sets a price which others follow - and possible price signalling - where the price leader reveals its price charges in advance to its competitors.
Sir John Vickers, chairman of the OFT, said: "We will now consult with the banks that would be affected on the case for a reference to the CC for fuller investigation of the market." He said the consultation would last for five weeks and close on March 18th.