Wednesday, December 08, 2010

Overdraft Charges Soar to Record 19%: Borrowers Pay an Extortionate 38 Times the Bank of England's Base Rate

Bank customers are being crippled by the highest overdraft charges since records began, figures have revealed.

Experts last night condemned the ‘exorbitant’ interest rates forced on those who plunge into the red.

Rates for authorised overdrafts – which have been agreed in advance – reached a record of 19.09 per cent in October, according to the Bank of England.

It means the typical customer who goes overdrawn is paying a rate 38 times higher than the base rate of 0.5 per cent.'


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