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Bank Account News
Overdraft charges 'more than credit card' - 04/09/2007
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Going over an overdraft limit can cost consumers more in charges than defaulting on a credit card, it has been revealed.
According to MoneyExpert, current accounts can charge as much as £60 for consumers who go into the red without permission, while the standard credit card charge has been restricted to £12 following an Office of Fair Trading investigation.
While the average customers could find themselves parting with £44.98 for accidentally overstepping their overdraft limit, one in three accounts charge more than £60 for such errors.
"Some people might think that their bank charges are on the verge of being reduced or scrapped following the recent OFT investigation and the glut of claims. But the court case continues and the charges remain," commented Sean Gardner, chief executive of MoneyExpert.
According to MoneyExpert, consumers are often "stung" by two bank charges consisting of an initial arrangement fee and a further fee if a cheque or direct debit bounces.
Last month, MoneyExpert reported that 30 million UK consumers are unclear about bank charges, with two-thirds of the population unaware of how much they are charged for going into the red on their current accounts.
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