Banks could help consumers with banking problems such as getting fined for exceeding their overdraft limits, says a finance expert.
Joanna Elson from the British Banking Association advises consumers who think they might go over their overdraft limit to contact their bank.
She said that banks are often compelled to apply penalty fares for unauthorised overdraft extensions as they have to provide extra credit at short notice.
However, Ms Elson explains that, "customers have the option to arrange an authorised overdraft beforehand".
"If they know they are likely to go overdrawn then they can do something about it," she adds.
She advises consumers to let their banks know if they've lost track of their banking arrangements and might need to temporarily extend their overdraft limit.
In many cases, banks that are given advance warning for one-off overdraft extensions will waive penalty fines.
The advice follows latest statistics showing that an increasing number of consumers are relying on their over-draft as a regular form of borrowing, rather than as an emergency supply of funds.
Borrowing from an overdraft is one of the most expensive ways of getting money in advance and banks are raking in an estimated £4.1 billion a year in overdraft charges.
According to the price comparison website uSwitch, there are around 3.5 million Britons who are permanently overdrawn, with the average account overdrawn by £667.
Banks could help with overdraft problems, says banking expert
Banks could help with overdraft problems, says banking expert
Wed, 05 Apr 2006
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