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18 Feb 2007 13:53
BANK CHARGES TIME TO STRIKE BACK
Many high street banks are planning to introduce bank fees and charges. The overdraft rates are slowly going up and as most of us are using our credit cards more, most rates for balances not paid off are going up. What can we do?
Bank Charges: if they cannot be justified write to your bank and complain. 2/3 of customers who did, got full or partial refunds, and if that doesn't work threaten them with the small claims court or the Financial Ombudsman Service. See www.which.co.uk/bankcharges.
Overdrafts: 1 in 4 current account customers are permanently overdrawn and 1 in 2 use their overdraft facility - so if you drop even by over £1 you can be hit so look out for the best deals. i.e. Alliance and Leicester Premier Direct account offers no interest on authorised overdrafts of up to £2500 in the first 12 months. The Nationwide has a lower rate along side the Halifax Moneybank - or you could just complain!!
Credit Card Rates: Choosing the right card to beat their rate rises depends on the length of time you take to repay the debt. e.g. The HSBC credit card has an interest free period on balance transfers until April 2008, but don’t use it to purchase with as its rate is high on new balances. The best card for that is the Skycard at 0% until Jan 2008.
However, whatever your situation, be prepared to challenge the charges and change - there are lots of alternatives and a bit of searching on www.uswitch.com or talking to a different bank can help.
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