£200 Halifax Overdraft APR 90,888.9%

December 13, 2011 No Comments

We recently wrote an article on Payday loans and comparable credit facilities. Unauthorised overdrafts are an alternative to payday loans but beware as these charge extortionate fees and interest.

The Consumer Finance Association is fond of quoting how much these cost compared to its own payday lender members’ charges, which gives you some idea of how astronomical they are.

It cites the cost of an unauthorised overdraft of £200 from the Halifax, which incurs a daily fee of £5: “The actual APR of the overdraft transaction is 90,888.9%.”