Further bad news for those with bad credit problems as overdraft rates rise again

Oct. 15, 2010 - PRLog -- New figures show in the past 18 months that over one in four current accounts have raised their overdraft rates, despite the Bank of England base rate remaining at an all time low of 0.5% for the entire period.

The cost of going in to the red and using an authorised overdraft has increased since March 2009 by more than 8% on some current accounts, according to moneyfacts.co.uk, a leading comparison website.

“Those with bad credit problems are having a tough time lately in the current economic climate”, said a spokesperson for Bad Credit Loans 4 You, a UK specialist at sourcing small loans for bad credit, “and unfortunately it doesn’t look to be getting any easier for them”.

This latest research comes only a day after the Bank of England released figures revealing that overdraft rates hit record high levels during August which will worry those with bad credit problems.

Current account users are now to be charged an average authorised overdraft rate of 19.1%, the highest since records began in 1995.

“This seems to be a trend which all lenders are currently doing”, noted the Bad Credit Loans 4 You spokesperson, “They are streamlining the services their accounts offer to increase their margins, which often requires them to remove the best deals in the process”.

“Unfortunately many people in bad credit circumstances regularly use an overdraft to get by each month, particularly in the current environment, and are seen as an easy target”.

The British Banker’s Association (BBA) has defended the rate rises, indicating that although the Bank of England base rate was still being kept low, it is not the only factor that affects borrowing and the rates associated with it.

A BBA spokesman confirmed that “"Before the credit crunch, the cost of borrowing could follow base rates much more closely, as banks could borrow money more cheaply”.

“But the economy has now changed dramatically. Banks still raise money they lend from two main sources - their customers' deposits and the wholesale money markets - but in both cases it is more expensive."

Bad Credit Loans 4 You are expecting to see a “marked increase” in applications for small loans for bad credit in the coming weeks as consumers attempt to get out of their overdrafts upon discovering how much extra they will be charged for using them especially as Xmas is soon to be upon us and Bad Credit Xmas Loans will be in much demand http://www.bad-credit-loans-4-you.co.uk/bad-credit-xmas-l...
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“The majority of current account customers only use an overdraft as a ‘buffer’, to help out infrequently if small issues arise during the month”.

“Others, however, regularly need to push their overdraft limit to the full in order to get by and these are the customers that will be hit the hardest by the overdraft interest rate increases”.

Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of CCJ’s and Defaults.

Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

For help, phone 0800 215 5863 or visit
http://www.bad-credit-loans-4-you.co.uk/bad-credit-xmas-loan.html

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Notes for Editor:

http://www.bad-credit-loans-4-you.co.uk/bad-credit-xmas-loan.html

Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 215 5863

Bad Credit Loans 4 You was formed in April 2010, bringing together a team of specialists that together offers over 50 years of expertise to help applicants gain the unsecured loans they need.

From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing loans for people with bad credit.

Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

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Loans 4 You helps people source the personal loan they need. Loans 4 You can help people with bad credit history, poor credit history and obviously good credit history, our senior management have over 50 years collective experience in the finance field.