Dagenham and Rainham MP Jon Cruddas today slammed Barclays bank for increasing the charges customers face when they find themselves overdrawn; which has led to some customers paying nearly 10% of their weekly income on overdraft fees.
Barclays bank currently charges 17.77% interest when customers are overdrawn however the bank plans to change this to a per day fee of 75 pence between balances of £16 and £1000.
For example, if a customer were overdrawn by £100 for a month, currently they would be charged £17.77% interest, and could pay that fee off over the year. This would mean that a fee of £1.48 would be charged monthly.
With the new fees, 75 pence would be charged per day and so over a 30 day month, this would result in a charge of £22.50 per month.
Jon Cruddas MP said "Barclays decision to restructure their overdraft charges at a time when working people are already struggling with the cost of living is horrendous. Barclays say they are making the system simpler but essentially they are charging customers more and making more profit; with no justification. In my constituency I see many people on low incomes being hit by these charges. If there is a delay in wages or a benefit has not been paid, people fall into these traps.
I have today written to Barclays questioning the fairness of these changes as I find it completely unacceptable".