LONDON (Reuters) — Britain’s consumer watchdog yesterday launched an in-depth investigation into retail bank charges, saying it shared the public concern about “the level and incidence” of current account charges.The Office of Fair Trading (OFT) said it had concerns after an initial review of charges, but it said retail bank pricing was not straightforward and a detailed examination was needed.

The probe follows a consumer backlash against bank charges this year. Consumer body Which? says people are successfully claiming back thousands of pounds from the banks, and over 250,000 have downloaded its template letter to reclaim charges.

The OFT said its retail bank pricing study will sit alongside an investigation into the fairness of bank current account fees. It said details would be announced late next month, and the study should be completed by the end of the year.

“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,” John Fingleton, OFT chief executive, said in a statement.

Fingleton said a “quick-fix solution” was not the answer, and he acknowledged that retail banking worked well in many areas, especially relative to international norms.

Most banks charge between $24 and $39 ($47-77) for an unauthorised overdraft or a bounced cheque, but can charge that more than once a month.

The OFT forced banks to halve charges for the late payment of credit card bills last April. It said at that time the same broad principles applied for other penalty fees, raising the prospect that it would impose caps elsewhere for all lenders, including big names such as HSBC, NatWest owner Royal Bank of Scotland and Barclays.