Fully Charged - Scottish CAB evidence on overdraft charges

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Evidence report Published 10 June 2010 Format: A4 ISBN: Price per hardcopy: [downloads are free]

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Summary

This research report looks at the continuing effects of unfair and disproportionate overdraft charges on vulnerable and low income clients. The main findings of the report include:

• Bank charges occur for various reasons other than irresponsible spending – including low income, job loss, mistakes by banks, or problems with benefit payments.
• Overdraft charges discriminate against low income clients – charges have a much greater impact and more severe consequences for low income and vulnerable clients.
• Banks are failing to help those in financial difficulty – responses from banks to customers in financial difficulty are often unhelpful, including offering loans or demanding unrealistic repayment rates
• Low income customers subsidise banking for higher income customers – the revenue made from customers who incur charges keeps the cost of an account low for higher income customers

If you have any questions about this report, please contact Keith Dryburgh, Social Policy Officer by email at keith.dryburgh@cas.org.uk or by phone on 0131 550 1015.