Bank accounts offer 'scandalous' overdraft rates
05 March 2010 16:59:04
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| Bank account holders are being hurt by high overdraft rates. |
Writing in the Daily Mail, the economic commentator criticised banks for charging unreasonable rates for borrowing, while at the same time penalising savers.
The average bank account overdraft rate is currently 18.9% , according to Mr Brummer, who accused banks of "charging borrowers through the nose".
He claimed: "The banks are enjoying some of the widest profit margins in their history despite being able to borrow so cheaply.
"This can be considered nothing short of scandalous, especially as many individuals and small entrepreneurs depend on an overdraft facility to tide them over while payments from larger organisations come through."
Mr Brummer also criticised the government and authorities for failing to intervene and put an end to the banks' "grasping" behaviour.
Recent research by credit reference agency Graydon UK and the Forum of Private Business found that four in 10 business owners had been unable to access credit from their banks, with 38% of these being refused an extension on their overdraft.
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