Student faces debt of £800 after going overdrawn by 8p

Tuesday 22nd July 2008

Banks are set to come in for renewed criticism over their approach to customer debt after an A-Level student was hit with a fine of £800 when she went overdrawn by just eight pence.

Laura Gibson initially went into the red on her Lloyds TSB current account in September 2007 when she bought a top for £60.

Since that time she has been charged fees for every month that the debt is outstanding, bringing the sum demanded by the bank to £800.

Ms Gibson, who has paid back £300 of the charges, claims she has suffered a nervous breakdown as a result of her treatment by the lender and has been threatened with legal action.

She told the Guardian: "This whole episode has been an absolute nightmare. For a debt to have gone from eight pence to more than £500 is crazy. I've stopped using the account and the way I've been treated is disgraceful.

"I'm working part-time to try and make ends meet and there's no way I can afford to hand over that amount of money for such a ridiculous debt."

Whilst the details in this case are extreme, with the rise in consumer debt, banks are coming under increasing pressure to be fairer to customers who find themselves in debt.

Consumers worried about credit card debt are advised to seek out specialist debt advice from qualified professionals equipped to recommend debt management plans.

Let Debtsolver help solve your debt worries.

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