Banks should only impose charges which are in proportion to their costs. This is because under the Unfair Terms in Consumer Contract Regulations the charge should not exceed the cost to the provider.

 

However, we all know and have experienced charges for going over our overdraft limit, for example, in excess of £20 or more. Yet all banks do is to send a computer-generated automatic letter which is estimated to cost them only between £2.50-£4.50.

We all know how infuriating it is to be charged £20 or £30 for going over your agreed overdraft limit by only a few Pounds.

 

Now is the time to take action against this unfair practice. The charges are not only confined to exceeding overdraft limits; they can include, amongst other things, returned cheques, unpaid direct debits/standing orders.