Overdraft charges 'increasingly confusing'

Overdraft charges enforced by banks are becoming increasingly confusing for consumers, it has been claimed.

According to moneysupermarket.com, charging structures for such facilities are not always clear and opting for the wrong one can result in people incurring extra fees of around £300 a year.

Head of banking at the price comparison site Kevin Mountford said: "The industry has tried to simplify the charging structure for overdrafts but has actually left consumers more confused."

He added that it is "vital" people understand that not all overdraft providers use the same charging structure and so selecting particular lenders can have a big impact on their finances.

The advice may be beneficial for a considerable number of consumers, with moneysupermarket.com suggesting that 17 per cent of the UK population are permanently overdrawn.

Recently, chancellor Alistair Darling announced he intends to break up the Royal Bank of Scotland Group and the Lloyds Banking Group to enhance competition in the market.
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04/11/2009 16:02

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