PPI, Credit Card & Bank Charge Claims >> Charges QnA

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Can a bank charge interest on its own charges?

14 October 2009

Unfortunately yes. Charges are incurred once a consumer

goes over their agreed limit.If the consumer's account stays in

overdraft charges debited would contribute to overdraft interest 

per month.

When an overdraft is agreed between a bank and a consumer, 

there will be an agreed limit with interest payable to the 

bank during the period in which the overdraft is used. Once the agreed limit is broken, banks may charge 

an even greater rate of interest for money withdrawn.