There has been a lot of news coverage recently about banks charging their customers unfair overdraft charges on their current accounts. The competition watchdog today launched a case against eight of the UK’s largest current account provides accusing them of unfair bank charges. The banks currently apply large bank charges on customers who have gone into their unauthorised overdraft. The watchdog has challenged these fees, however, saying they should be limited to what it actually costs the account provider when the account goes overdrawn. In some cases banks charge up to £39 for going overdrawn. The eight banks involved in this test case are Abbey, Barclays, Clydesdale Bank, HBOS, HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide. As someone who has been charges unfair fees in the past I will be watching this case with interest.
