Question

mahalwari system advantages and disadvantage

Answer 1

September 2006, the Office of Fair Trading (OFT) announced its plans to investigate default charges associated with bank current accounts, following the successful investigation into credit card default charges. The OFT noted that the broad principles in relation to default charges were likely to apply across the whole retail banking sector. This investigation also followed an increase in the number of people reclaiming their unauthorised overdraft charges and high levels of media coverage on the subject. The OFT stated that it shared public concern over the amount and frequency of bank current account charges, following their initial investigation. Banks were in doubt as to whether or not bank charges were under the OFT’s remit, which triggered the legal dispute. It was at this point that banks agreed to a test case and the hearing started.