instant payday loans in uk

UK banks charging as much as 800000% on overdrafts

Some High Street banks are charging "eye-watering" rates of interest when their customers go over their overdraft limit, research by Radio 4's Money Box programme has revealed.

A customer borrowing £100 for 28 days without the consent of Santander would repay £200, for example.

That is the equivalent annualised percentage rate, or APR, of 819,100%.

Eric Leenders, from the British Banking Association, said that the industry was willing to look at concerns.

But he said that using APRs to calculate the cost of unauthorised borrowing was a "mathematical manipulation" because the fees are representative of borrowing on an overdraft facility, not for borrowing the specific amount of money.

Mike Dailly, from the Govan Law Centre, said the government must review unauthorised overdraft charges.

"What we've got here is banks with equivalent APRs of nearly one million percent. It really is eye-watering."

High cost

Comparisons between banks and so-called payday lenders showed that the annualised percentage rate charged for borrowing £100 over 28 days varied from 969% to 819,100%.

No payday loan lender charged an APR of more than 5,000% but two banks - Santander and Lloyds TSB - charged an equivalent APR of more than 300,000%.

Santander told the BBC: "It's is confusing to compare payday loans with overdrafts on current accounts because an unauthorised overdraft charge is for unauthorised use of a current account while a payday loan is an agreed loan facility."

Barclays would charge a customer using a personal reserve - a pre-agreed emergency borrowing facility - £22 for every five consecutive working days they were in it. This means customers would pay £88 on top of the £100 capital after 28 days - an equivalent APR of 366,000%

Mr Dailly said the situation is worrying for consumers.

Georgia Collectors Association Offers Holiday ... - Payday Loans UK

For Helpful Consumer Personal Finance Information, Visit

www.AskDoctorDebt.org

ATLANTA, Dec. 2, 2011 /PRNewswire-USNewswire/ — Holiday season can be stressful for Georgia consumers, especially if the prospects of buying gifts will add to an already burdensome debt load. 

The Georgia Collectors Association (GCA) offers the following personal finance tips for consumers this holiday season.  “Careful planning and active communication are important tools to effectively managing personal finances, particularly if a consumer is struggling to make payments on their current debt obligations or being contacted by a debt collector,” said GCA President Allison Millwood.

Plan and Budget:   Holiday gift giving doesn’t need to break the bank; after all, it’s the thought that counts.  Determine what you can reasonably afford, create a budget and plan for gifts, and stick to it.  Keep in mind that purchases on credit will need to be repaid at some point in the future.   Track your Spending:  Keep tabs on how much you spend to help stay within the guidelines of your “holiday budget.”   Protect your Identity:  Be careful about giving personal information including a credit or debit card number over the phone and online. Monitor your accounts and immediately report any suspicious or unauthorized purchases to your bank or credit card company.  Consumers should monitor their credit and are entitled to a free credit report each year at www.annualcreditreport.com .  If you believe your identity has been stolen, contact your local police department. Communicate with Creditors: Having trouble making payments on an existing debt? Contact the creditor to discuss alternative payment arrangements. It won’t eliminate your debt but it can make things more manageable.

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