Just 48 per cent of UK adults are aware of early repayment fees – which can range from £14 to £59 – while 14 per cent believed the bank would reward them for paying back their loans early, according to a survey by Amigo Loans.

Amigo Loans also found a discrepancy between how much interest consumers expect to pay and what they are actually charged.  A quarter of Brits believe the average APR on a bank loan is between six and 10 per cent and one in ten believe it is between one and five per cent.

Based on a £2,500 bank loan taken out over 36 months, Halifax offered an interest rate of 29.9 per cent, RBS 22.9 per cent and Santander 20.3 per cent.

M&S Bank, First Direct, Sainsbury’s Bank and Nationwide all offered rates below 20 per cent.

James Benamor, CEO of Amigo Loans, said: “Banks are lying to their customers and duping them by advertising rates that only a few people will actually get. On top of this they load on hidden fees, charges and hard-sell ancillary products to boost their profits. While many people are denied a bank loan by a cut-throat credit score, those who are successful are ultimately borrowing at much higher rates than expected.”