Excessive Interest

[Mal]

How does the law stand when it comes to excessive interest incurred because of charges pushing you over you overdraft limit so they increase your interest rate to c29%

 

For example

 

Billy has a £1000 over draft on his account and is £990 overdrawn on the first of the month and has £200 going in on the 2nd

 

On the first he has 5 DD hit is account each for £20

 

The Bank then bounces all his DD charges 5x£30 so that’s £150 plus £35 because he is over his agreed limit and poor old Billy still has to pay his £100 worth of bills plus any costs incurred at the other end of the DD’s. So Billy is now going over his overdraft limit every month and is trying desperately to pay everything off whilst the bank have upped his rate to 29%

 

Or the Bank could have done this

 

Let Billy go £90 over his Limit for one day and charged him higher interest for that day plus of course £35 for passing your over draft for one day

 

If these charges are illegal then Billy has gone into the higher interest rate because of them so surely he should have regress to get that money back. I realize that it would be very hard if not imposable to work out the actual interest cost but it would be just as hard for the banks to prove that it did not cost

 

Not sure that makes any sense to anyone else but me

 

Mal

[Mal]

This topic was closed on 03/06/19.

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