Which! vow to clean up credit
It’s not just payday loans that are due an overhaul - other forms of credit such as overdrafts can be just as expensive, says Which! They’re launching a campaign today to clean up the filthy credit market, where extortionate charges and fees abound even from some the high street’s biggest names.
If you have an unauthorised overdraft with the Halifax or Santander, for example, and you borrow £100 for 31 days, it can cost you between £20 and £30 in fees. Borrow it from your local Wonga using your William Hill loyalty card as ID, and you will pay a very similar amount – between £20 and £37. AND, both the Halifax Reward Account and Santander Everyday Account charge £100 a month for going into an unauthorised overdraft of just £100. Which is just lunacy.
And although the Financial Conduct Authority plans to crack down on payday lenders, there’s no action being taken about the penalty and default fees on payday loans or unauthorised overdrafts.
Which! ain’t sitting back and having that. Their Clean Up Credit Campaign will put pressure on the FCA to crack down on irresponsible lending across the board. So if your bank charges through the nose if you dip into your overdraft, let them know.
Richard Lloyd – do you by any chance have a quote for us?
‘High street bank overdraft fees can be just as eye-watering as payday loans. Consumers need the credit market to work competitively. It's time to clamp down on excessive charges and irresponsible lending, and to make sure borrowers are being treated fairly whatever form of credit they’re using.'
Ah, he never lets us down.