In reaction to a High Court case brought by the Office of Fair Trading, banks have initiated changes in penalty charges for exceeding overdraft limits.
Which? the consumer action group, believes that in many cases these changes are an attempt to draw attention away from high bank charges prior to the test case.
Which? argues that any changes should result in reduced charges and greater transparency. Some changes in charges, such as the tiered system offered by Lloyds TSB, benefit some customers, but not all, and are more difficult to understand.
Which? advises consumers to continue claiming back past penalty charges from their bank and provides template letters for this purpose.