Bank charges forcing us into our overdrafts

Last updated: Feb 19th, 2013
News by Hugh Morris
Overdrawn

More than 40% of people have paid bank charges at some point in the past year, and 57% of them were pushed into an unauthorised overdraft as a result.

Survey results released by thinkmoney also reveal the average cost of bank charges over the past year was found to be £46.84 but almost one in six customers had paid more than £100. 
 
Bounced direct debits, unpaid standing orders and unauthorised overdraft fees were all high up on the list of reasons for bank charges cited by customers. 

Unknown charges

The survey also found 5% of those with a current account - around 2.3 million people - are not sure whether they have incurred charges in the past 12 months, and 3% have been but don't know how much. 
 
 
Ian Williams, of thinkmoney, said: "Although 58% of those questioned have never paid bank charges, more than four in 10 have - and many of those have experienced further problems as a direct result.”
 
The research was based on responses from more than 2,000 people surveyed at the end of January.