Bank managers shown on TV boasting of how they overcharge
STARTLING new evidence has emerged about how banks overcharge customers who go into the red.
Managers at Barclays boasted to an undercover reporter that bouncing a cheque or stopping a direct debit costs the bank as little as £1.50 or £2 to administer.
The revelation comes as hundreds of thousands of bank customers attempt to reclaim "illegal" current account charges of up to £40.
By law, the banks are not allowed to make a profit from these charges, only cover expenses such as sending a letter.
Other practices revealed in the programme included:
• "Upgrading" customers to Barclays' Additions account, which charges a fee of £14 a month, without their agreement. Bankers get a £10 bonus for every Additions account sold and one was quoted, saying: "If we've got four million customers paying £14 a month, another £60 million comes in. Thanks very much."