UK bank reduces overdraft charges

Anyone looking to avoid either debt management or debt problems may be interested by news that Barclays is to reduce its fees for unauthorised overdrafts, it has emerged.

Previous charges of up to £35 per day for unauthorised bounced payments are to be replaced by a charge of £8 per transaction, in a move which will come into effect in August 2008.

However, another UK bank - Lloyds TSB - offers customers a service which lets them know when they are either close to the maximum authorised limit, or about to go overdrawn.

Under existing pricing structure, guaranteed but unauthorised transactions are charged at a rate of £30 per payment.