Customers still suffer 'crazy' bank charges

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http://www.thisismoney.co.uk/campaig...in_page_id=507

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Re: Customers still suffer 'crazy' bank charges

Customers are still being charged hundreds for overstepping their overdraft by a few pounds as the High Court battle over unfair fees rages on…

Stress-test: Ross Lewis, 19, says the effort of repaying his bank charges is only adding to his A-level stress




Banking executives do not understand the injustice of hefty overdraft charges because they will never have to sacrifice a month's wages to pay off a minor mistake, according to one young bank customer.

Ross Lewis, 19, earns £150 a month working in a local gaming store at the weekends near his home, in Middlesex, in order to fund his future life at university. He knows this pay is little for the effort he puts in, but still sees the sum as a fortune.


It is for this reason that he is furious at being charged almost £300 for going £25 over his agreed overdraft limit with Lloyds TSB earlier this year, money he can ill afford and may not be able to recoup until the High Court delivers its decision on unfair overdraft charges in July, if ever.





He accidentally overstepped his overdraft in January by £25 and he calculates the penalties and interest so far incurred from being pushed further and further into debt now total £292.66.


He said: 'I have paid the fees back twice, once borrowing money from my mother as well as using my full wage to pay it back the following month. This has left me penniless and yet the charges still keep coming.


'To add insult to injury, I received a phone call this month asking if I wished to use a direct debit to pay back the fees. As far as they know, this is the only account I own, so I'm unaware of where they thought I was going to pay it back from.


'All my wages are being consumed by these charges. I'm in the final year of A-levels and these crazy charges simply add to the stress.'


His case highlights how bank customers continue to suffer disproportionate overdraft charges on a daily basis as the High Court battle over their legality rages on.


The High Court case has been brought by the Office of Fair Trading against eight High Street banks – among them Lloyds TSB – over alleged 'unfair' charges levied on customers when they overspend and fall into 'unauthorised' or unarranged overdrafts on their current accounts.





The judge at the centre of the case was due to deliver his findings recently, but instead opted to postpone his decision until July.


Not only have the banks been granted a waiver against paying any compensation to those who argue they have been unjustly charged, but thousands of customers are still being levied punitive charges.


These can be up to £30 a time for accidentally overspending on their account by only a few pence, often incurring charges of over £100 once additional monthly fines are also taken into account.