New bank charges blueprint on its way

16 March 2010

monkey bank manager

The fall-out from the meandering bank charges legal saga continues as the Office of Fair Trading are said to be due to reveal the planned future of bank charges later today.

A voluntary code agreed by the OFT and the banks is believed to be in the pipeline and MoneySavingExpert’s Martin Lewis is predicting that charges in excess of £10 will be binned, presumably because the banks have privately conceded that they are unfair.

But there’ll be no refunds for customers who have incurred higher charges in the past – the voluntary charge levels will almost certainly be higher than most campaigners would have hoped for and most of the banks will eventually find other ways to maintain their profits.

At the weekend, The Observer highlighted the plight of a 20-year-old Alliance & Leicester customer, Lewis Mathers, who was charged the grand total of £80 after mistakenly going 15p over his authorised overdraft limit. That’s an interest rate of 53,333% and an APR of almost 2,000,000%.

TOPICS:   Banking   Complaints


  • Nobby
    The lengths some people go to just to get in the papers. Maybe I should buy something and purposely go 1p over my overdraft limit, then leave the charges to mount up. Then I could get the record fees per amount overdrawn past my authorised limit. There has been enough about bank charges in the news. If people still go over their limits then they deserve the fines.
  • Nobby
    Although obviously they are charges, not fines. But they are made to feel like they are being fined for being stupid.
  • jim b.
    is this the same martin lewis who informed his loyal following they would all get there charges back before the last court case? cocky smug odious character
    [...] New bank charges blueprint on its way | BitterWallet [...]

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