Over the past couple of years there has been much controversy regarding the charges that banks and building societies make to our bank accounts whenever we go overdrawn. Whilst everybody knows and must expect to be charged a small fee if they go overdrawn without authorisation, banks have been unable to justify the large amounts they have been charging - some as high as £35 per transaction, and sometimes for each day you are overdrawn.
Whilst there has been many claims from account holders to try and get refunds, some being successful, it can be a costly and lengthy procedure.
Lloyds TSB have just announced they are to cut their bank charges - the very first high street bank to do so - from November 2nd 2007. This may prompt other banks to follow suit and reduce costs on unarranged borrowing, bounced cheques and going overdrawn.
Marc Gander from the Consumer Action Group (CAG) is still worried the new charges are still over the top.
“On the basis that the real cost of sending a letter or bouncing a cheque is about £2.00, then the mark-up is still very high.”
Banks and building societies have refunded an approximate total of £570m to account holders in 2007.
Read the full article at BBC News here
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