http://news.uk.msn.co...-documentid=154159613
)))))The banking industry has defended its fees after research suggested people with unauthorised overdrafts were being charged average interest of 167% a year.
Business Secretary Vince Cable accused the high street banks of "ripping off" their customers and failing to be transparent over the fees they levied.
He added that consumers were losing out because of a lack of competition in a marketplace that was dominated by a small number of big banks.
His comments came after research for BBC One's Panorama found that many consumers were paying far higher interest on authorised and unauthorised overdrafts than the rates advertised by banks, once additional charges were factored in.
The research indicated that once these fees were included, the average annual rate charged for an authorised overdraft by the high street banks was 32%, despite the fact that many accounts advertised rates of around 19%.
The average annual charge was even higher for people who went into the red without permission, at 167%, once all the different fees had been factored in.
But the British Bankers' Association defended the charges, pointing out that as overdrafts were designed to be used for only a few days, it was impossible to calculate accurate annual lending rates((((
I agree with Vince - what do you think ?