The OFT is aiming for a quick resolution to its investigation, as the seperate High Court test case drags on.
Penalty fees at just three banks will now be probed by the Office of Fair Trading (OFT), the organisation announced this morning.
The firms in question are Lloyds TSB, HSBC and Clydesdale. The OFT also said that the banks were "representative" of those previously under investigation and did not have an unusual charging structure themselves - and added that the streamlining was due to its own wish to wrap up its investigation in "the shortest and most efficient way possible".
Fees levied by banks for breaking overdraft limits had become the subject of a consumer revolt prior to 2007, with hundreds of thousands of people claiming them back. This led to the beginning of the OFT's investigation and the calling of a separate High Court test case to check whether or not the organisation could demand refunds for customers, if it found against the banks.
The financial regulator also froze all claims in mid-2007, pending the results of the case.
Customers seem likely to face a long wait for resolution in the High Court. In April, a judge ruled that the OFT could investigate aspects of the charges' fairness - a decision that was promptly appealed by the banks.
Moreover, earlier this week the House of Lords said that the banks could dispute an earlier verdict from the case, which said that banks were covered by contract fairness laws. A further appeal on this matter could prolong the battle still further.
The OFT expects its own investigation to be concluded by the end of the year.
