Following the recent outcry regarding penalty fees charged by banks for customers who exceed their overdrafts, there is speculation as to whether banks will begin charging its customers for their current accounts.
Thousands of customers are reclaiming charges from their bank as they believe the charges made are unlawful. Claims can be back dated to cover the last 6 years for charges made on customers exceeding overdrafts or having a cheque or direct debit payment bounce. Banks should only be imposing charges which are in proportion to their costs. For example if the overdraft is exceeded by one penny banks would commonly charge around £30 to £35 a time, which is very high.
The refunds due from the banks amount to somewhere in the region of £50 million so it will come as no surprise to some if the banks begin to start charging its customers for general use of a current account.
The growing rate of overdraft use acts as another indicator of the Uk's increasing debt problem, with the number of IVAs and bankruptcies set to rise this year.