High-street banks charging you four times as much as payday lenders

[citizenB]

http://www.mirror.co.uk/money/high-street-banks-charging-customers-8381277

 

 

Got to get back some of that money they have been fined over the past couple of years !!

 

Some major banks are charging customers several times the fees of payday lenders to borrow money, an investigation by Which? has found.

 

The consumer group probed the fees high street lenders charge when people slip into an unarranged overdraft - which could happen when someone breaches their planned overdraft limit or when they do not have an pre-arranged overdraft, but spend more money than they have in their account.

 

 

 

Looking at unarranged overdraft charges, the consumer group's research found that consumers needing as little as £100 could be charged over 12 times more by major high street banks than the amount the Financial Conduct Authority (FCA) allows payday lenders to charge, when borrowing over the same period.

 

 

 

 

Which? compared the cost of borrowing £100 for 28 days and found that charges at some high street banks were as much as £90 - up to four times the maximum charge of £22.40 on a payday loan.

 

It found that some RBS customers could face costs of £90, while customers at Lloyds, HSBC and TSB could face £80 in costs.

The consumer group said unarranged overdraft borrowing charges from some high street banks are 12 and-a-half times higher than the FCA cap if consumers borrow £100 for one day.

[citizenB]

http://www.bbc.co.uk/news/business-36746372

 

 

"The regulator has shown it's prepared to take tough action to stamp out unscrupulous practices in the payday loans market, and must now tackle punitive unarranged overdraft charges," said Alex Neill, director of policy and campaigns at Which?

 

 

I don't see this happening anytime soon !

[honeybee13]

That's amazing, CB.

 

Hopefully people will become more aware of places like credit unions and also peer to peer lenders who are charging reasonable rates of interest.

 

HB

[citizenB]

That's amazing, CB.

 

Hopefully people will become more aware of places like credit unions and also peer to peer lenders who are charging reasonable rates of interest.

 

HB

 

 

Well it isn't for want of trying, honeybee - this forum alone has devoted countless hours and posts trying to persuade people to head toward Credit Unions !

[honeybee13]

Indeed, we have stikkies about credit unions.

 

Here's a link to the Money Advice Service about P2P borrowing.

 

https://www.moneyadviceservice.org.uk/en/articles/peer-to-peer-loans

 

HB

[citizenB]