Overdrafts being exceeded by nearly half of Brits

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Overdrafts being exceeded by nearly half of Brits

Mon 8th Jan 2007

It is becoming increasingly likely that Britons will go over their overdraft limit with nearly half being shown to have done so in the past, new research suggests.

A total of 43 per cent were found to have exceeded the limit set on their agreed overdraft by price comparison website Moneysupermarket and on each occasion, the individual in question is subject to an average charge of £19.80.

At present, the Office of Fair Trading (OFT) is conducting an investigation into excessive overdraft charges as well as current account fees in a bid to ascertain whether they are warranted or not.

Stuart Glendinning, managing director at Moneysupermarket, remarked: "The OFT's decision could have a massive impact on the personal banking industry and if people aren't vigilant they could find themselves being denied an overdraft and thus missing paying some of their bills or even ending up paying other new fees."

Many people in the UK have found themselves languishing in their overdraft following the festive season and in recent weeks, banks such as Lloyds TSB, NatWest and HSBC have all raised their overdraft charges, meaning many will feel the pinch.

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