Many British banking customers are overpaying for their overdraft facilities, Alliance and Leicester (A&L) reveals.
Banking customers of Barclays, HSBC, NatWest and Lloyds TSB are paying interest rates that are not competitive, according to A&L.
If they were not already in debt, one in three banking customers claim they would switch to another provider that offers more competitive interest rates.
More than eight in ten banking customers admit they are worried that should they switch banking providers, they will risk their overdraft.
"Most people today see an overdraft as an essential part of their current account and frequently rely on it to support the cost of day-to-day life," says A&L's current accounts manager, Simon Ripton.
A third of British banking customers say they use their overdraft to fund everyday living expenses.
For this reason, Mr Ripton says it is "astonishing" that so many people remain confused about how it works when a banking customer with an overdraft switches providers.
Londoners are most likely to have overdrafts, the survey showed, with Scottish banking customers apparently steering clear from going into the red.
Banking customers overpaying, says A&L
Financial Services > e-banking > Banking news
Banking customers overpaying, says A&L
Thu, 15 Dec 2005
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