Wednesday, 6 December 2017

Banks should end all unplanned overdraft charges, charity says

Banks should end all unauthorised overdraft charges because they are trapping people in persistent debt, the financial charity StepChange has said.

The organisation also wants banks and regulators to do more to identify people caught up in a "vicious cycle of borrowing".

Even where customers have admitted they are in trouble, it said banks often fail to help.

However High Street banks said they were committed to lending responsibly.

In 2016 some 2.1m people used their overdraft every month of the year, according to industry figures.
The UK's biggest bank, Lloyds, has already abolished charges for unplanned overdrafts.

Customers of Barclays cannot get an unauthorised overdraft, but they can apply for "emergency lending".

However others, including Santander, Royal Bank of Scotland (RBS) and NatWest still offer unplanned borrowing.

Santander charges up to £95 for each month a customer is overdrawn. RBS, NatWest and HSBC have a cap of £80 a month.

BBC       News.