Major banks have come under fire in the last year over the outrageous interest rates they charge customers who enter their overdraft without previous agreement, with complaints lodged over the issue by thousands of people. Some have claimed back up to six years worth of penalties, however due to High Court proceedings involving major banks and the Office of Fair trading to decide on the validity of the charges, the banks involved have said they do not expect to issue any refunds in 2008.

This will come as a blow to many customers who feel they have been treated unfairly. Many of those who are forced to go into their overdraft on a regular basis may eventually take out a bad credit loan. The UK’s fifth biggest bank, HSBC, has stated it took £116 million in the first half of 2007 – the equivalent of £1 million for every working day.

“It raises many questions about the future of personal banking in the UK” the head of HSBC’s UK banking, Dyfrig John, said. “You have got to look at various charges, the balancing between what is a fee and what we provide for nothing.”