Since the credit crunch hit, the banks seem to have changed the rules on numerous forms of credit. Hidden fees have crept into many credit card deals and interest on personal loans has increased across the board. Now it seems it is the turn of the overdraft, with many banks altering the terms and conditions of their overdrafts.
There are some who believe that the banks are changing their overdraft policy in response to the outcry over unfair bank charges for unauthorised overdrafts, bounced cheques and other penalty charges.. This may be so, but if their intention is to make their charges fairer and simpler, there is a long way to go yet. While many of the new overdraft conditions appear to be offering customers a better deal, a closer look at the small print shows that in many cases, customers are worse off than before.
The Lloyds TSB overdraft, for example, has trimmed it’s overdraft charge from £30 to £15. But they have also started charging their customers a daily fee for b…