side apply picture

Articles

Are Bank Charges Excessive?

Written By On 14/10/2013

Which? have revealed the details of their latest study concerning charges that banks are imposing on their customers and the figures are not for the faint hearted!

The Financial Conduct Authority will be regulating over the complete credit industry in six months time and so far the main focus appears to have been solely on the short term loan industry. But it seems the consumer group's report has highlighted some very high fees that have been flying under the radar thus far.

Utilising a current account overdraft facility with your bank proved it can be quite costly, even if it is authorised. Halifax appears to display the worst charges. A typical customer loaning an amount of one hundred pounds for a month would need to repay an extra thirty pounds totalling one hundred and thirty pounds.

However if one of their customers was to enter into an unauthorised overdraft of the same amount for the same length of time, then they will need to repay an extra one hundred pounds for charges alone.

Santander UK have also come into the limelight as their fees seem quite high also. They are as competitive as Halifax on their unauthorised overdraft fees, but charge about a third less on the interest for their authorised ones.

Which? Feel the FCA needs to look at all credit lending facilities across the board and not just payday loans.

Executive director Richard Lloyd commented

The Government and regulators have rightly focused on the scandal of payday lending, but they must not lose sight of the urgent need to clean up the whole of the credit market. High street bank overdraft fees can be just as eye watering as payday loans.

ARCHIVES