16 November 2009

Ochil & South Perthshire MP Gordon Banks has levelled heavy criticism toward HBOS bosses after the company decided to raise charges against customers using an overdraft facility.

HBOS customers with authorised overdrafts who use more than £10 of this arrangement each month will be charged £1 per day each day their account remains overdrawn

Mr Banks will write to HBOS management to uncover what, if any, consultation was undertaken with customers prior to changing the charging regime .

The MP said “I am deeply disappointed by this news and HBOS bosses should seek to alter these proposals immediately.”

“I appreciate times are tough for the banking industry but banks should not be looking to take advantage of customers in such a cynical manner as this.  If the bank wants to institute these charges for new customers then fine, but to impose them on existing customers is downright deceitful.”

“Instituting flat fees such as this could bizarrely encourage people to get more into debt and I am wholly against it.”