Overdraft charges are increased

Posted 2008-05-12

Some of the UKs banks have increased the interest rates on their current accounts, new research has found.

According to Moneyfacts.co.uk some lenders have cut their rates by up to 1.75 per cent while others have increased them.

Michelle Slade, analyst at the price comparison site, believes that consumers are being targeted at a time when they can least afford it.

She went on to add that it may be a case of banks making the first move in anticipation of losing the battle being brought against them by the Office of Fair Trading.

"This is really disappointing news for current account customers. It could well be that banks and building societies are pre-empting a reduction in overdraft fees when the OFT case is finally settled," Ms Slade added.

Nationwide became the latest lender to charge its customers higher interest rates on overdrafts, after announcing an increase of three per cent.

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