Overdraft fees adding to debt problems, claims finance site
Overdraft fees adding to debt problems, claims finance site
Wednesday 11th June 2008
In a study conducted by finance web site FairInvestment.com it was found that just over one in ten Britons are forced to go over their overdraft limit on a monthly basis.
In so doing, they are being charged fees of up to £40.
The poll also found that 16 per cent are unable to afford to pay the fees which they say they are "constantly" being charged.
Responding to the figures, David Doulton, director at FairInvestment.co.uk, called on banks to bow to pressure to make overdraft fees fairer to help consumers who are struggling with the higher cost of living.
He said: "The fact that more than half of Britons are affected by bank charges should urge the banks to act in their customers' best interests, but they are more concerned about the £3.5 billion a year they are raking in from them."
The results of the site's survey come amid mounting fears that higher rates on credit card debt and loans will fuel a huge rise in the number of Britons taking out individual voluntary arrangements (IVAs) this year.
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