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Overdraft fees being litigated in U.K.

April 21, 2008 | alternatives, industry, international | Comments (0)

The Payday Pundit loved this story.  One 19-year old bank customer is highighted: 

He accidentally overstepped his overdraft in January by £25 and he calculates the penalties and interest so far incurred from being pushed further and further into debt now total £292.66.

He said: ‘I have paid the fees back twice, once borrowing money from my mother as well as using my full wage to pay it back the following month. This has left me penniless and yet the charges still keep coming.

The High Court will be ruling soon on whether overdraft protection fees constitute violations under Britain’s Fair Trade laws.   

The payday lending industry exists in part because consumers are trying to avoid bounced check fees and costly overdraft protection charges.    

BTW, the average overdraft protection fee in the United Kingdom is $57

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