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30 million people in the dark on bank charges

Two thirds of the nation is currently unaware of how much they have to pay when going into the red on their current accounts, according to new research. Financial comparison website MoneyExpert.com says around 66% of the population admit to being completely in the dark when it comes to how much they are charged by their bank for being overdrawn.

Despite the current controversy surrounding bank charges, the survey shows that even those who have successfully claimed back a bank charge were unable to confirm how much these were.

41% also admitted to being completely unaware of the charge their bank levies if they exceed their overdraft limit. One in seven of these had made a successful claim for a refund of charges against their bank yet still didn’t know. A further 13% think they are being charged less than £20, but with the typical charge around £28 they are probably mistaken.

Sean Gardner, Chief Executive of MoneyExpert.com, said: “Bank charges may be a hot topic in the media but many people’s idea of how much they are being charged for their overdrafts is horribly wide of the mark. “It’s obviously important for people to understand the consequences of going overdrawn. While it’s ultimately the customer’s responsibility to avoid going beyond their overdraft limit, banks should make their charging structures more transparent. They could also provide a clearer indication of when customers are close to going in the red.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .