Banks charges up 20%

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In the last three years banks have increased their charges by up to 20 per cent, new research finds.

Since 2003, the average penalty fees levied for unpaid standing orders, bounced cheques and direct debits have risen to more than £32 from £27, research from Defaqto reveals.

The Office of Fair Trading (OFT) is currently investigating these fees - after ruling that such charges on credit cards should be no more than £12 (full story).

But while this might lead to a fairer system for all, there are risks that it could also have implications for those bank customers who budget well......

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