‘Some banks are charging customers more than payday lenders to borrow money – up to £100 in charges and interest to borrow £100 for one month – a study shows.
The charges levied by high street banks are “eye-watering”, campaigners said, and consumer groups are now calling on the UK government to extend a clampdown on excessive charges aimed at payday lenders.
The research found that borrowing £100 for 31 days will cost £30 with a Halifax authorised overdraft or £20 with some Santander accounts, while borrowing the same amount for about a month with a payday loan firm such as Quickquid or Wonga costs between £20 and £37.
For people using the Santander Everyday account and Halifax Reward current account, it can cost £100 in charges for going £100 into an unauthorised overdraft for a month, the research said.’
Read more: Some banks charging more than payday loan firms