rges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicingWhile the subject of reclaiming unlawful overdraft and penalty charges from your bank has been a popular topic over the last couple of years, it has only just come to light how much the banks are “skimming” from customers. A report issued today by the BBC2 Money program has found evidence that Banks have been charging upwards of ?30 pounds for actions which costs them no more than ?4.50!

Until recently it was not well known, but historical consumer laws state that it is illegal for a bank to charge penalty fees in excess of the cost of the transaction to the bank. The BBC report found that the unauthorised overdrafts only cost a bank ?2.50 in extra work while reporting a “bounced” cheque cost a maximum of ?4.50, although banks were charging in excess of ?30 for each.

The issue is now in danger of getting out of control with many market observers calling on the government to step in and outlaw the excessive charges. While the authorities consider their next move, many members of the public have taken matters into their own hands with literally hundreds of thousands of complaints delivered to banks over the last 12 months. It is interesting to note that not one of the claims has been challenged in court, and the banks have all repaid the excessive amounts to customers who have complained.

There has already been a limited knock on effect in the credit card industry (obviously closely connected to the banking giants) where excessive charges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicing

em no more than ?4.50!

Until recently it was not well known, but historical consumer laws state that it is illegal for a bank to charge penalty fees in excess of the cost of the transaction to the bank. The BBC report found that the unauthorised overdrafts only cost a bank ?2.50 in extra work while reporting a “bounced” cheque cost a maximum of ?4.50, although banks were charging in excess of ?30 for each.

The issue is now in danger of getting out of control with many market observers calling on the government to step in and outlaw the excessive charges. While the authorities consider their next move, many members of the public have taken matters into their own hands with literally hundreds of thousands of complaints delivered to banks over the last 12 months. It is interesting to note that not one of the claims has been challenged in court, and the banks have all repaid the excessive amounts to customers who have complained.

There has already been a limited knock on effect in the credit card industry (obviously closely connected to the banking giants) where excessive charges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicing

banks were charging in excess of ?30 for each.

The issue is now in danger of getting out of control with many market observers calling on the government to step in and outlaw the excessive charges. While the authorities consider their next move, many members of the public have taken matters into their own hands with literally hundreds of thousands of complaints delivered to banks over the last 12 months. It is interesting to note that not one of the claims has been challenged in court, and the banks have all repaid the excessive amounts to customers who have complained.

There has already been a limited knock on effect in the credit card industry (obviously closely connected to the banking giants) where excessive charges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicing

s delivered to banks over the last 12 months. It is interesting to note that not one of the claims has been challenged in court, and the banks have all repaid the excessive amounts to customers who have complained.

There has already been a limited knock on effect in the credit card industry (obviously closely connected to the banking giants) where excessive charges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicing

rges have been outlawed in a regulatory review, although they appear to have increased interest charges to make up for the difference. As the financial industry prepares itself for a flood of claims as further public awareness is created, it will be interesting to see how they recoup their lost income - maybe we will see the onset of annual charges for the servicing of current accounts for members of the public?

One thing is for sure, while the banks appear to be “rolling over” at the minute and settling all claims, they will surely be looking at ways of retaining their profit margins. The banking system in the UK has long been criticised for excessive profits, but it will be interesting to see how the government react in terms of regulation. In the past, many aspects of banking regulation have been voluntary, but surely we will see some definite action from ministers.