Lenders hike rates on overdraft debt
Lenders hike rates on overdraft debt
Wednesday 30th July 2008
Figures from the Bank of England show that the average rate on an authorised overdraft was 17.9 per cent at the end of June.
Just a month previously the typical rate was 17.4 per cent.
The increase comes after a number of high street lenders have in recent weeks increased the cost of going overdrawn, with Abbey upping its authorised overdraft rate by three per cent to 19.9 per cent.
The hikes have met with criticism from debt help providers on the grounds that they are putting more pressure on consumers already struggling with debt problems due to the soaring cost of living.
News of the findings comes as a study from finance site Moneynet.co.uk recently revealed that consumers with a Lloyds TSB Classic Plus account are paying the highest overdraft fees in the UK, with account holders who exceed their agreed overdraft limit by £50 for two weeks hit with a charge of £165.
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