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UK banking market survey 2008
18/06/08
Of those
people asked, almost a quarter of current account customers have an
agreed overdraft facility but still slip over it from time to time,
incurring a charge from their bank. Nine per cent do not have an
agreed overdraft but still slip into the red every now and then.
Another 16 per cent said that they are constantly being charged and
cannot afford to pay them, while 11 per cent exceed their overdraft
as often as every month in order to make ends meet.
Meanwhile, 15 per cent of customers have an agreed overdraft which
they stick to and never exceed, and a quarter of respondents said
that they have no need for an overdraft and are therefore also not
affected by bank charges.
"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." said David Doulton, director at
FairInvestment.co.uk.
"With the cost of living on the rise, consumers are finding it
harder and harder to make ends meet. Banks have a responsibility to
their customers to provide fair bank charges. Currently, people are
being charged up to as much as £40 for exceeding their overdraft.”
In April, a High Court Judge, Mr Justice Andrew Smith, confirmed
that the charges were eligible to be assessed under rules governing
consumer contract regulations, and said that under these rules the
Office of Fair Trading could determine whether or not the charges
are fair.
The banks have appealed this ruling, maintaining that the charges
they implement are both fair and proportionate. It is hoped that
this will go to the Court of Appeal in July, but campaigners are
concerned that it could take longer if the case goes to the House of
Lords and European court. Nobody has been able to reclaim their
charges since last summer, when the FSA implemented a freeze on
reclaiming until the issue is clarified by law.
Before reclaiming was halted, the banks are reported to have paid
out an estimated £1billion to dissatisfied customers, and thousands
more await a final decision, hoping that the OFT emerges the victor
so that they can also reclaim their money.
Fairinvestment.co.uk offers a No Win, No Fee service to reclaim
unfair bank charges.
Fair Investment Company is a leading internet player that sees
400,000 unique users per month, sells over £5 billion worth of
mortgage enquiries and is a Hitwise 100 Banks and Financial
Institutions site.
Nick Gibson, editor
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