Penalty fees survey shocks BBA

by Gill Montia

Story link: Penalty fees survey shocks BBA

uSwitch, the price comparison website, has published the results of a poll in which over 4,000 of its customers were surveyed about the penalty fees charged by leading UK banks.

The research was conducted by YouGov and concluded that UK bank customers who have been charged such fees have paid an average of £742 each, over the past six years.

The data included fees for so called “breaches”, such as unauthorised overdrafts and bounced cheques and direct debits.

According to the study, Lloyds TSB charged the most out of the UK’s five leading High Street banks, with the customer liable for penalty fees paying £800 on average, over the past six years.

However, the figure for Abbey came well ahead of Lloyds TSB, at £1,376, or £230 a year.

Further more, the data for all the banks included in the survey suggest that one customer in 20 has been charged at least £2,500 over the six year period.

The British Bankers’ Association (BBA) has responded strongly to the survey’s findings and called the uSwitch figures dangerous and misleading.

Referring particularly to the claim that 62% of bank customers do not incur charges on their current accounts, the BBA has stated that the figure is between 80% and 85%.

However, the uSwitch survey estimates that penalty fees have provided a combined income for the banks of around £8.6 billion over the six year period.