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
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
Charging £120 a year for current accounts from 1 May
Loads up to 1 per cent on to interest for personal loans
Loan rate rises 0.3 per cent to 6.1 per cent in January
Raising fee for foreign purchases on credit cards from 2.75 per cent to 3 per cent from April
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.