Bankchek, an organisation which looks into bank overcharging, has reported that National Westminster Bank has been overcharging interest to many of its business customers who exceed their overdraft limits. The organisation claims that before the period 1991/2, the banks – including major culprit NatWest – had been charging interest rates “far in excess of those agreed in the facility letters [contracts], unknown to many customers and certainly without their consent”. While the banks admit it was essential to agree such rates with the customer in advance, there is strong evidence that this was not done, alleges Bankchek. The findings are revealed in an analysis of facility letters that existed between businessmen and their banks prior to 1991/2.
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