Research report which looks at the continuing effects of unfair and disproportionate overdraft charges on vulnerable and low income clients.
The recession has left Scots more exposed than ever to disproportionate and unfair overdraft charges from their banks. For our clients they are unfair – they are disproportionate to the level of infringement, they penalise low income customers for being poor, and trap many in a cycle of debt for an overdraft that can be as little as a penny.
As incomes reduce in the recession and people get closer to their overdraft limit, many will look to their bank for financial help. However, the reality is that many bureau clients will be hit with high charges for their financial trouble, leaving their existing credit commitments and housing costs ever harder to pay.
This report looks at the sharp end of overdraft charges, showing that bank charges are not always caused by irresponsible spending, that vulnerable clients are hit much harder by charges, and that banks are failing to help those struggling with their finances.