Banks step up overdraft charges
www.moneynews.co.uk > General finance > Banks step up overdraft charges
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Money News |
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Banks step up overdraft charges
Wed 25th Oct 2006
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The bank that hits customers' wallets the hardest was found to be Lloyds TSB, who, once changes to their overdraft's come into force on November 1st, will charge a fee of £30 should a customer go over their overdraft limit by £1 for one day.
That represents an interest rate of 29.8 per cent on the Lloyds TSB Classic Plus account. Other banks' charges differ, ranging from an interest rate of 28.8 per cent from Halifax, to zero charges from Alliance & Leicester.
Moneyfacts analyst Lisa Taylor stated: "While it can not be disputed that current account fees look excessive, the problem is made worse by the lack of transparency caused by the complex terms, conditions, waivers and by every provider charging in a slightly different way."
She continued: "To avoid these charges, always speak with your bank as soon as you foresee a problem arising, and if possible have an 'in case of need' overdraft facility in place, so at least you won't be so severely punished for those 'emergency' or unforeseen moments."
Ms Taylor also spoke of the Office of Fair Trading's (OFT's) "success" at getting banks to reduce the default fees on credit cards and said that she believed the OFT would now focus its attention on current account charges.
Related News : General finance |
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