Increase in UK Bank Charges

Banks are increasing charges through introducing new types of charges. This is response to the investigations of the FSA who are declaring some bank penalties as illegal. For example customers who were charged mortgage exit fees of more than £65 can claim the excess back.

However to retain profit margins many banks are introducing new charges including

New Bank Charges being introducing

LLOYDS TSB

Introduces charge of £35 for people who use credit card infrequently. Personal loan rate up half a per cent

ALLIANCE & LEICESTER

Jump of 0.4 per cent in loan rates in past two weeks

BRITANNIA BUILDING SOCIETY

Mortgage exit fee up from £75 to £110 in January

CITIBANK

Charging £120 a year for current accounts from 1 May

MINT

Loads up to 1 per cent on to interest for personal loans

NORTHERN ROCK

Loan rate rises 0.3 per cent to 6.1 per cent in January

MORGAN STANLEY

Raising fee for foreign purchases on credit cards from 2.75 per cent to 3 per cent from April

MBNA

Introduces charge of £10 for credit card users in credit last month. A 7 per cent rise in interest rates for personal lending, from 7.9 per cent to 14.9 per cent.

Banks Overcharging for information on exit fees

Banks who overcharged customers for things like exit fees and other late payment fees have now been accused of overcharging customers who want information about their overcharging. Customers are entitled to ask the bank for a list of all charges. The Data Protection Act stipulates the cost should be £10, but many banks are charging upto £48.

The Financial Ombudsman Service is being overwhelmed by complaints from customers who claim banks are taking too long to respond.

THe banks are being investigaged by several different bodies.

The Office of Fair Trading OFT is investigating a fair level of bank charges.

The Financial Services Authority is investigating the slow response time of banks to customer requests