Bank charges revealed: Fees of £180 on £100 borrowing
Borrowers needing as little as £100 could be charged up to £156 more by their bank than it would cost at a payday lender, Which? has found.
The consumer group is urging a crackdown on the “punitive” charges that can be incurred when someone goes into an unauthorised overdraft.
Which? compared the cost of borrowing £100 for 30 days using an unauthorised overdraft.
It found some banks charge more than seven times the maximum £24 charge on a payday loan.
Customers who need £100 could end up paying as much as £180 in fees at their bank if they borrowed the money across two monthly billing periods, according to the findings.
Which? found that NatWest could charge £180 to borrow for 30 days over two billing periods, a difference of £156 compared with a payday loan costing £24.