20% Increase On Overdraft Charges In Last 12 Months
28 November 2008
Yes it seems that there is no end in sight for those going however meagrely into the red, as banks have stuck £5.00 on top of the cost of going overdrawn in the last twelve months. That’s an increase of twenty per cent.
It seems that financial institutions are tittering in the phizog of the powers that be, what with there being an ongoing Court case in relation to bank charges, between them and the Office of Fair Trading. Perhaps they are making hay while the sun shines.
This time last year consumers were being charged £25 every tome they went over their overdraft limits or bounced a cheque but now, one year on, they are being charged £35. this is thought to be effecting as many as twenty-five percent of the UK adult population.
Britons are haemorrhaging funds with this happening along with the cost of mortgage rates and other loans in the wider market.
The interest rates that are being charged on overdrafts have increased by 1.44% in the last year with an average of 11.67% last year, increasing to 13.12% this year.
This is horrid news with the cost of Christmas and people will be either giving their children smaller stockings, emptier ones, or getting themselves in serious debt.
The customers that are in the unfortunate position whereby they are living from their overdraft are going to find themselves in a predicament whereby it is going to cost more and more to have access to such funds.
It seems somewhat strange that banks are just upping the cost of charges when they are still fighting a battle in court against the OFT. If anything it should surely be a case of them stabilising charges until the outcome of the court case.
So many households at the moment are really struggling to keep up with the cost of life in the Albion. !0% of us have failed at one point or another to make a mortgage, personal loan, or credit card payment within the last six months.
The Financial Services Authority has frozen claims in relation to bank charges, subsequent to thousands of customers claiming back their charges. with banks flagrantly pre-empting a victory in their fight with the OFT, it would be good to see the cased resolved in favour of the Office of Fair Trading and therefore the consumer.