PPI Claim News - 23/2/2010
Loan Claim: Overdraft charges taking consumers into the red
Consumers who find themselves borrowing from their overdrafts are facing increased charges, bringing them further into the red, a new report suggests.
Research by financial advice website moneynet.co.uk found that consumers are paying on average 10 per cent more on overdraft interest rates than they were two years ago.
It says that in February 2008 someone who was overdrawn by £1,000 for 6 months of the year would pay an average interest rate of 13.85 per cent. However, faced with the same scenario today they could expect rates of around 15.32 per cent.
Andrew Hagger, from moneynet.co.uk, said: "With savings rates falling whilst the cost of loans, credit cards and overdrafts are heading in the opposite direction, it's no surprise that many people are so disillusioned with financial services providers in the UK."
His comments come after a separate piece of research by the website, released last month, found that a quarter of all people do not trust that their banks will treat them fairly.
Indeed, only seven per cent of people questioned reported having faith in their banks.
Belmont Thornton can help you make a PPI claim – Payment Protection Insurance Claim, or a credit card charges claim. For free PPI Claim advice call 0845 526 0000 or fill in the Quick Claim box to be sent a PPI Claim pack or credit card charges claim pack.
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