Borrowing Charges - page 2
Now many banks are under pressure to reduce their charges
Whatever the reduction in interest charges applied by the banks, the basics of the situation remain unchanged for the present. An unauthorised overdraft still attracts charges, as it should, and ongoing cost on cost is still being applied. Thus the interest charges reduce the amount in an account and increase the likelihood of cheques or direct debits not being honoured, generating letters to the account holder. These letters have to be paid for, again reducing the account balance ….. and so the rising spiral of debt continues, with ever increasing problems for the individual. Reduced charges may have diminished the overall cost, but the background problems remain, and the charges applied can still exceed the total value of the overdraft.
Keyword News
Whilst it is good to see that costs are being applied in a more accurate way which is tied in to the actual costs to the banks, it does not escape the notice of even the unaffected observer that challenges issued to banks by some very aggrieved customers have produced many successes. The situation needs to be watched however, as there are many other ways in which the banks can maintain their profitability; additionally a touch of 'pique' may be making itself felt, in that customers who have succeeded in their claims are finding that their bank no longer wishes to have them as a customer. This can cause severe problems and is best countered by opening an account elsewhere before proceeding against your existing bank.
This situation should not be allowed to affect your intentions. If you feel that your bank has not treated you fairly, go to www.which.co.uk for guidance on your best way of dealing with the problem. Easy advice of course, but the best solution is to keep close track of your finances and do your best to remain 'in the black'. Problem solved? Would that it were so easy!
