Current account charges cost £40m a year, says analyst

11 September 2006
According to price comparison site Moneysupermarket.com, customers in the UK give away over £40 million in penalty charges to banks every year.

Unauthorized borrowing on overdrafts can amount to as much as £125 per month, the website claimed, and welcomed the Office of Fair Trading's decision to investigate the charges levied against customers.

The £125-a-month figure also does not include the additional interest charged on their personal borrowing, on top of any basic interest rates that apply to the agreed overdraft limit.

"When it comes to personal banking, apathy is expensive," said Stuart Glendinning, managing director at Moneysupermarket.com.

"Failing to budget properly or keep an effective eye on your account can cost you and banks rely on it to help fill their coffers.

"People need to avoid burying their heads in the sand and be scrupulous about the money going in and out of their current accounts in order to avoid paying these punitive charges," he continued.

"With ever-increasing levels of consumer debt, every penny counts for the nation's current account customers and we urge the OFT to investigate the market for current account penalty charges as soon as possible."

To read more about banking, click here.


track© Adfero Ltd