Monday 23rd of November 2009
Bank charges can push households further into the red, especially if they fall into their overdrafts - or never get out of this extra limit - on a regular basis.
Around 12 million people in the UK have had to fork out for bank charges since July 2001, a new report reveals, although obtaining individual voluntary arrangement (IVA) advice could see households eventually get themselves into the black.
The statistics from Which? show that despite some success stories of claiming bank charges back, 63 per cent of consumers have not asked for their money to be repaid.
Over 40 per cent of individuals claim they will use such a windfall to clear bills and debt - although an IVA could be required if debt cannot simply be resolved by a few hundreds pounds.
An IVA may be used by households with debts of at least £15,000 and up to 70 per cent of unsecured borrowings can be reduced by the agreement.
The figures come after a test case is expected to be ruled upon by the Supreme Court on Wednesday (November 25th), which could open the floodgates for bank customers being able to claim back charges.
By Ashley Littley
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA information to help those hit by benefit changes?
