The EU is considering what action it can take in the coming months against banks which are not transparent in their charges and in some instances prove to be overexpensive for customers.
A study conducted by the European Commission shows that banks across Europe are generally failing to give customers clear, basic information and that in some cases their treatment of customers breaks EU law.
Specific problems include information which in many cases is difficult to understand, opaque bank fees and problems with advice and low levels of switching.
The report describes the price structures of current accounts as "very opaque, making it almost impossible for consumers to know how much they are paying and to compare different offers".
In 66 per cent of banks surveyed, bank fees were so unclear that experts compiling the report needed additional explanatory contacts with the bank to find the real cost of an account.
Austria, France, Italy and Spain score poorly on transparency and are among the most expensive countries for banking accounts.
On the other hand Malta scores quite well with lower-than-average fees and above average transparency as far as tariffs are concerned. The study states that the EU market is fragmented, depriving consumers of the advantage of the EU's internal market. Only nine per cent of EU consumers switched current accounts during 2007 and 2008.
Presenting the report, European Consumer Commissioner Meglena Kuneva made it clear that retail bankers are letting consumers down.
"There is widespread evidence that basic consumer principles are being violated with problems from complex pricing to hidden charges and information that is unclear and incomplete," she said.
"Banks need to put their house in order with a culture change in the way they treat customers. And member state authorities need to fulfil their obligation to enforce EU consumer laws," Ms Kuneva warned.
The report covers prices and accounts, packages and operations for 224 banks, including three in Malta, accounting for 81 per cent of the EU market.
The report found that the size of fees differs widely from country to country, even between countries of comparable wealth. Some accounts in France, for example, were found to be €100 more expensive than the same types of account in Belgium.
One of the Commission's main aims with the report is to improve the clarity of pre-contractual information.
The report said that consumers tend to find information provided by bank employees "incomprehensible", "insufficient" and complicated in its presentation.
The report reveals that the opacity of bank fees resulted in 29 per cent of customers not choosing the account best suited to their needs.