Which?: Block payments instead of making charges

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Which?: Block payments instead of making charges

Mon 30th Nov 2009

A survey carried out by Which? has found that 46 per cent of consumers would rather have payments stopped from leaving their bank accounts than pay overdraft charges.

Younger people would rather avoid charges, with 65 per cent of those in the 16-24 age group preferring to have their payments blocked, compared to the 38 per cent of over 45s, who would pay the overdraft fee.

Following the Supreme Court's ruling last week that banks did not have to refund unauthorised charges, Which? has called for banks to make unofficial overdrafts on accounts optional.

Which? personal finance campaigner Phil Jones said that these charges are effectively giving consumers loans they have not asked for, then charging them high rates for them.

"Such an expensive 'service' shouldn't be forced on people who don't want it as it can easily lead to financial difficulty," he concluded.

Following the ruling, the financial services provider had advised consumers to get in touch with their bank if they found themselves in money trouble as the institution may waive any fees it has imposed.

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