The committee concluded that tougher rules were needed to make the big banks more competitive.
Iam Mullen of the British Bankers Association (BBA) criticised the complexity of interest rate charges across the board, including overdrafts and credit cards, which were often buried in small print.
The BBA argued, however, that the popularity of these products proved their workablility spoke for themselves, but John McFall, Treasury committee chairman disagreed saying that even the banks had problems working out eachother’s rates.
"Customers should not have to engage in 'assiduous research' to understand financial products," added Mc Fall.
The comments are the latest in a series of criticisms from MPs of the UK banking market exploring concerns stemming from the power of the so-called "big four" banks - Lloyds TSB, Barclays, Royal Bank of Scotland and HSBC.
New research from consumer magazine Which? suggests almost 900,000 people are likely to move their current accounts away from the big four banks over the next year.
