Wed 23rd Jan, 2008
Rip-off charges
There has been a lot of controversy in recent months over the amount banks are charging us for going over or credit card limits. A test case is in the high court at the moment and the outcome of that case will be the deciding factor, with regards to whether or not the fees our illegal or not.
Research out today has sown that customers who have been charged fees paid an average of £742 over he past six years. This amount covers charges for what banks term ‘breaches’ and include unauthorised overdrafts, bounced cheques and direct debits that are not paid on anything from phone bills to personal loan repayments
Banks have expressed anger at the research, considering it comes at such a sensitive time, just as the banking industry is going to the High Court to decide the fate of these charges. Angela Knight, Chief executive of the British Bankers Association has claimed the figures are dangerous and misleading.
The worst bank for charges is Abbey where customers have paid an average of £1,376 in charges over the past six years. Lloyds TSB came in second with customers there paying an average of £800 over the same period.
Even more shocking is evidence that some customers, roughly one in twenty, have been charged at least £2,500 over the last six years.
Roughly four in ten bank customers have incurred a penalty fee since 2001. If you are facing financial difficulty then you could consider taking out a loan to help avoid getting too deep in debt, as well as the bank fees you might end up with a bad credit rating.