Overdrafts

Update - Fri 27 Jul: This story now includes information on when and how customers will be reimbursed.

The Co-op and its sister bank Smile have become the latest current account providers to announce a rise in overdraft costs.

Lloyds TSB and Bank of Scotland (BoS) will scrap overdraft charges for many customers who slip into the red this autumn. However, they are raising fees for customers who pay for an overdraft facility.

Halifax is raising fees for customers who are deep into their overdraft.

Regulation for most financial products will be housed under one roof, the Government has proposed today.

Santander will double overdraft charges in a bitter blow to its five million current account users.

Consumers using unauthorised overdrafts find it virtually impossible to calculate how much their bank or building society would charge them or compare fees between providers, research from consumer group Which? has found.

Low income consumers are typically paying £174 a year on extra credit costs from high street lenders by building up charges as they juggle their finances, a report warns today.

One in seven Britons has turned to a pricey payday loan or sky-high unauthorised overdraft to cover rent or mortgage costs in the last year, a worrying study from charity Shelter has found.

The so-called 'free' banking system in the UK is a myth and has led to "damaging decisions", the regulator claims.