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NewsConsumers charged £1,700 for being 8p overdrawn
Consumers charged £1,700 for being 8p overdrawn
Posted by Cheryl Bennett
New parents Wayne Green, 23 and Angela Hannibal, 21 have had to pay over £1,700 in consumer bank charges for an unauthorised overdraft of eight pence.
They were faced with an initial charge of £170, which Ms Hannibal offered to pay back at a rate of £30 a month but since then a series of further charges have been incurred.
This in turn has led to lease arrears and the couple have now been ordered to leave their home, with Mr Green - who was made redundant earlier this year - noting they have been struggling to keep up with council tax and rent payments.
"We don't understand why they keep charging us. We went in and spoke to people but they didn't seem to know either," he remarked.
It follows a This is Money report revealing that banks are raiding consumer accounts to settle debts on cards and loans through the power of set-off, which allows creditors to take cash without permission to cover that owed on a range of products, a practice that Citizens Advice believes is increasing.
28/10/2010 12:11
News category: Consumer