Todays Money Mail reports that state-backed banks are charging more for short-term borrowing than back-street lenders and payday loan companies.The charges levied can be significantly more than the amount borrowed.
Lloyds Banking Group is the worst offender. LloydsTSB charges an eye-watering £216.32 for someone who goes overdrawn by £150 for ten days without permission
Royal Bank of Scotland, another of the state-backed banks, charges a more reasonable £20.73. HSBC charges only 75p if it is the first time a customer has gone overdrawn in a six-month period. Nationwide Building Society would take £20.78 and Santander £51.06.
