7 September 2006
uSwitch, the price comparison and switching website, has commented on the recent increase in overdraft rates by NatWest, Smile and Lloyds TSB.
Nick White, head of personal finance at uSwitch, said the Office of Fair Trading (OFT) investigation into credit card charges had caused many banks to look at new ways of getting more money from customers.
He said: "These overdraft rate increases are a clear signal that the industry is looking to stay one step ahead of the game; confident that the OFT will be slow to enforce changes in this arena, which is no surprise given its recent track record.
"The current account is the most widely held financial product, with 85% of all adults holding one,(totalling 40 million customers), and more than a third of consumers (35%) relying on their overdraft, this is clearly an easy place for banks to generate income.
"To date, just three current account providers have announced an increase in overdraft rates but I don't doubt it will be long before other major players follow suit."
Compare current accounts and find the best current account for you with the uSwitch.com's free comparison service.