Due to the overwhelming allegations that banks and other lenders were ripping consumers off by overcharging and selling expensive loan insurance, the Office of Fair Trading has stepped in to resolve the problem.

With everyone suffering from the financial downturn, the group has forced some banks to reduce overdraft penalty charges of up to £35 a time.

In addition to this, the Financial Services Authority has fined several major lenders for mis-selling payment protection insurance. This means customers can claim back excessive charges or mis-sold cover.

Action was taken after the Financial Ombudsman Service received its highest consumer complaints ever recorded.

New complaints hit an all time high at 127,471 in 2008. Meanwhile, the number of insurance moans increased 84% compared to 2007, and loan complaints jumped 34%.

1.3m people took out payment protection insurance in the mistaken belief it was compulsory. Each one is likely to have a legitimate complaint against their lender.