Banks should be prevented from imposing “punishing” overdraft charges onto customers according to Redcar MP, Ian Swales, who has called on the new coalition Government to step in and prevent banks from issuing excessive charges
Mr Swales has warned against excessive overdraft fees, which he believes can tip vulnerable customers already walking a financial tightrope into debt and has tabled a written question to the Chancellor of the Exchequer, Rt Hon George Osborne MP, to ask him to introduce legislation to bring an end to unfair bank charges.
Commenting Mr Swales said:
banks only exist because they have been bailed out by British taxpayers, yet financial service companies are still ripping people off. UK
“It simply isn’t right that someone on a low income should pay £25 or more to their bank just because they’re overdrawn by a pound or two. Punishing overdraft fees like these only serve to push vulnerable customers further into debt.
“I hope George Osborne agrees that legislation is absolutely necessary if we’re serious about scrapping unfair bank charges once and for all.”