You are here: Home - Uncategorized -

Regulator demands cuts to “unlawful” bank charges

Written by:

Consumers are set to benefit from reduced bank charges after the Office of Fair Trading (OFT) announced that many of the current charges were “unlawful”.

The OFT announcement means that from now on fees for late payment of credit card bills, bank overdrafts or mortgages must not be set at a punishing level by banks. The OFT said that the charges should now only recover the costs incurred by the provider.

And it said charges of over £12 for a late payment of a credit card bill could be deemed as unlawful.

The Citizens Advice Bureaux welcomed the announcement as it claimed many people were suffering considerably under the current system.

It gave the example of a Suffolk woman in receipt of benefits totalling £65 a week, who had set up an account to pay four monthly direct debits of about £5 to £10 each. On four occasions she did not have sufficient funds to cover the direct debit, and she was charged £32 for each unpaid direct debit – a total of £128 – or two whole weeks benefit.

Sue Edwards, Senior Social Policy Officer for Citizens Advice, said: “This announcement from the OFT is excellent news for the many millions of people in the UK who pay banking charges every year.”



Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Brits pay for relying on neighbours for security

Most people rely solely on their neighbours for their home security, but those that do are missing out on insurance...