Banks moving ahead of overdraft charges ruling
February 29, 2008 by admin
Filed under News, News-Banking
Banks have made a move to reduce overdraft charges ahead of the High Court ruling over unauthorised customer fees, according to new research. 
Findings from MoneyExpert showed that the average unauthorised charge has dropped by five per cent over the past year, decreasing to 20.01 per cent compared with 25.25 per cent.
Sean Gardner, chief executive with finance experts, said that the current account market is changing very rapidly.
“It is encouraging that average unauthorised overdraft rates have dropped by five per cent in the past year. That said though a 20 per cent rate is still very high and well above the average standard credit card rate,” he said.
An estimated nine providers, including Northern Rock, still charge customers 29 per cent on going into the red.
According to MoneyExpert, a further 52 out of 136 accounts from 27 providers charge more than 25 per cent on their overdraft facilities.
Meanwhile, analysis from the financial experts showed that customers who insist on a passbook with their saving account are receiving an average of 0.5 per cent less on their cash.
