Bank awareness warning issued

Speaking in the wake of Britain’s so-called big five banks announcing record profits, Nick White, director of financial services uSwitch.com, suggested individuals should keep a close eye on how their account or credit card debt charges change.

“We have seen several big banks introduce new charges over the past few weeks in the areas they haven’t previously charged for and all consumers should be on their guard during 2007,” the finance boss at the independent price comparison and switching website made clear.

Mr White also pointed to the £13 billion written off by the major banks due to bad debts during 2006 as “evidence as to why consumer debt in the UK is such a growing problem”.

A report from the accountancy firm KPMG released last month revealed that over 100,000 Brits entered into an Individual Voluntary Arrangement (IVA) or filed for bankruptcy during 2006.