Which? warns on bank charges

by Gill Montia

Story link: Which? warns on bank charges

Which?, the consumer organisation, has levelled criticism at the banking sector, which is says has introduced a new set of charges aimed at offsetting losses incurred by the controversy surrounding unreasonable fees for unauthorised overdrafts.

Last year the Office of Fair Trading ruled that the charge for going overdrawn without permission must not exceed £12.

In addition, banks have been sued by individual customers resulting in millions of pounds being made in repayments.

According to Which?, large numbers of people are now being charged by High Street banks, just to use their accounts.

Incredibly, some are also being penalised for not using their cards frequently enough, and some are being charged when their bank provides them with routine personal information.

In efforts to reclaim lost revenue, the banks have so far introduced new annual fees, whilst also imposing additional charges for transferring balances-between credit cards.

In its research, Which? found that some banks now charge a £24 annual fee for the use of a credit card.

Low-usage fees are commonly increasing to £35 a month, while balance transfer fees have risen from a typical 2%, to 3%.

Which? is advising consumers to check the small print on their credit card and bank accounts, so that they know exactly what charges apply.