Overdraft facilities are increasingly confusing those who are using them, an industry expert has claimed, despite the fact that attempts have been made to simplify charging structures in this area.
Head of banking at moneysupermarket.com Kevin Mountford remarked that these so-called simplifications have “actually left consumers more confused” and that it is essential debtors are aware that “not all providers use the same charging structure”.
“The key is choosing the right product for their borrowing needs,” he said.
His comments follow research from the price comparison website, which revealed that 17 per cent of the British public is permanently overdrawn, while 13 per cent use their overdrafts more than six times each year.
Furthermore, it emerged that opting for the inappropriate facility could cost people the approximate annual sum of £300.
In related news, Halifax and Bank of Scotland recently announced plans to increase their overdraft charges by the daily amount of £1 for those with such accounts of up to £2,500.
By Sarah Adie