The Office of Fair (OFT) Trading has launched a study into personal bank current account pricing, in conjunction with a formal investigation into the fairness of charges for unauthorised overdrafts and returned items.

The OFT was expected to announce its decision on bank charges in March, but has decided a wider study is needed into the issues surrounding bank charges.

The OFT commented that it shares public concern about the current level and incidence of charges, but believes any quick-fix solution might have unintended and far-reaching consequences across the sector and for consumers as a whole.

Consumers will have to wait until the end of the year to find out what the Office of Fair Trading considers is a fair amount for banks to charge customers who default on their current account.

The news will come as a blow to people who were hoping that the amount they were charged for defaulting on their current account would soon decrease. However, it means customers who have paid charges will have more time to recoup the full amount from their bank.

The OFT has admitted that the issues surrounding bank charges were more complex than first thought. While hundreds of thousands of people continue to reclaim their bank charges, which have been deemed to be unlawful, there are increasing concerns about how banks will recoup these losses.

It is widely expected that if charges are capped, more banks will introduce monthly fees on current accounts.

The OFT spokeswoman agreed that the prospect of monthly charges being introduced made the issue of current account charges far more complex than that of credit card charges.

Last year the OFT announced that a 'fair' charge for customers who missed a monthly payment on their credit cards was £12. Some card providers were charging up to £30 for missed payments but all are now complying with their ruling.

John Fingleton, OFT Chief Executive said: 'The issue of bank current account charges is a matter of real concern to the banks' customers, and raises wider questions about competition and transparency of pricing.

'The initial scoping work we have undertaken has demonstrated to us that this is not only an issue for those people who are being charged, but also for customers who are not defaulting on their bank accounts.

'A quick-fix solution is not the answer as this might be of limited long-term benefit and could have unintended and far-reaching consequences across the whole sector and on consumers as a whole.'

'This market study will enable the OFT to consider wider questions about transparency and value in the provision of personal current accounts. This will provide the necessary context for assessing the fairness of unauthorised overdraft and returned item charge before we apply the law in this area. Our ultimate objective is a competitive retail banking market in which informed and active consumers drive strong competition and high levels of customer service among banks long-term, with minimum regulatory intervention.'