Payday fees ‘beat banks’

BANK overdraft fees are far higher than payday loans, says watchdog Which?

It compared borrowing £100 from 16 banks for 30 days in an unarranged overdraft to the capped £24 cost of a payday loan.

Thirteen banks charged more. To borrow from Santander cost £ 179, almost 7.5 times higher. TSB charged £ 160 and HSBC £150.

Santander, which is cutting unauthorised overdraft charges, said: “Figures from Which? are based on the current position.”