More than half of people are affected by 'unfair' bank charges,
FairInvestment.co.uk has found
Released
on: June 17, 2008, 2:05 am
Press
Release Author: Fairinvestment.co.uk
Industry:
Financial
Press
Release Summary: Research from Fairinvestment.co.uk, the independent
online finance portal, reveal more than half of people are affected
by ‘unfair’ bank charges.
Press
Release Body: More than half of banking customers pay bank charges,
research from FairInvestment.co.uk has revealed.
Of
those people asked, almost a quarter of current account customers
have an agreed overdraft facility but still slip over it from
time to time, incurring a charge
from their bank. Nine per cent do not have an agreed overdraft
but still slip into the red every now and then.
Another 16 per cent said that they are constantly being charged
and cannot afford to pay them, while 11 per cent exceed their
overdraft as often as every month in order to make ends meet.
Meanwhile,
15 per cent of customers have an agreed overdraft which they stick
to and never exceed, and a quarter of respondents said that they
have no need for an overdraft and are therefore also not affected
by bank
charges.
"The
fact that more than half of Britons are affected by bank charges
should urge the banks to act in their customers' best interests,
but they are more concerned about the £3.5 billion a year
they are raking in from them." said David Doulton,
director at FairInvestment.co.uk.
"With
the cost of living on the rise, consumers are finding it harder
and harder to make ends meet. Banks have a responsibility to their
customers to provide fair bank charges. Currently, people are
being charged up to as much as £40 for exceeding their overdraft.”
In
April, a High Court Judge, Mr Justice Andrew Smith,
confirmed that the charges were eligible to be assessed under
rules governing consumer contract regulations, and said that under
these rules the Office of Fair Trading could
determine whether
or not the charges are fair.
The
banks have appealed this ruling, maintaining that the charges
they implement are both fair and proportionate. It is hoped that
this will go to the Court of Appeal in July, but campaigners are
concerned that it could take longer if the case goes to the House
of Lords and European court. Nobody has been able to reclaim their
charges since last summer, when the FSA implemented a freeze on
reclaiming until the issue is clarified by law.
Before
reclaiming was halted, the banks are reported to have paid out
an estimated £1billion to dissatisfied customers, and thousands
more await a final decision, hoping that the OFT emerges the victor
so that they can also reclaim their money.
Fairinvestment.co.uk
offers a No Win, No Fee service for reclaiming
unfair bank charges – start the process today: reclaim
unfair bank charges.
About
Fair Investment
Fairinvestment.co.uk is an independent online
finance portal, providing comparison tools, news, reviews and
information on a wide range of financial products and services,
including insurance, credit cards, mortgages, loans, savings and
investments. Fair Investment Company is a leading internet player
that sees 400,000 unique users per month, sells over £5
billion worth of mortgage enquiries and is a Hitwise 100 Banks
and Financial Institutions site.
Web
Site: http://www.fairinvestment.co.uk/
Contact
Details: Rachael Stiles
Senior Staff Writer
Media Centre
20 The Mall
Clifton
Bristol
BS8 4DR
Tel: 0117 9335507
Fax: 0117 9335509
www.fairinvestment.co.uk