Banks have been critisised this week for the extortionate interest rates charged for their unauthorised overdrafts.
In the last 12 months the Bank of England base rate has dropped from 4.5% to 0.5%, yet borrowing costs have remained high. Many debt management clients come to us having used their overdrafts, and even exceeded them, and have found that this has cost them dearly.
The average unauthorised overdraft rate has not dropped from its high of 13.5%. At the same time, the interest rates offered by the same financial institutions on customers savings has plumeted from 3.24 to 0.6%.
Pierre Williams from moneyexpert.com said "It's galling for customers who've seen savings rates plummet over the last 12 months to realise that banks are refusing to budge for the rates that they charge on overdrafts."
If you are constantly in your overdraft, or have any querires about debt, call MRA Debt Help on 01424 777156
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