Latest Debt News
Banks hiking charges
19/10/2005 14:43:00
New reports reveal that banks have been increasing their charges for current accounts and overdrafts by more than 15 per cent in the last year.
This is Money highlights the recent increases in overdraft charges at HSBC (£20 to £25), NatWest increased (£35 to £38) and Lloyds TSB (£25 to £30).
The 25 per cent increase by HSBC is over nine times the rate of inflation.
The human consequences of such charges are also documented by This is Money. The website gives the example of a 74-year- old disabled pensioner who was fined £150 after going less than £100 overdrawn. The lady had paid for vital house maintenance and then forgot her council tax was about to leave her account.
Douglas McWilliams, chief executive for the Centre for Economics and Business Research, which has looked at bank charges, told This is Money: "If you disagree with charges it is likely that you will have unauthorised borrowing and that will not make it easy for you to get a different bank account."
Mr McWilliams added that such fees and they way they are rising above inflation could be a matter for the Competition Commission.
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