Be wary of credit offers, expert advises

Friday, June 25th 2010

A financial expert has urged Britons to use the advantage of a huge banking market to get the best deal for themselves.

Chris Tapp, director of Credit Action, says remaining loyal to one firm is not necessary, as there is likely to be a better deal with another institution.

Mr Tapp was commenting on the decision of Lloyds TSB to slash its costs for current account holders who go into their overdraft, with the fee for bouncing cheques also being cut.

He notes such charges are a vital source of revenue for banks, so consumers should be wary that when they are taken away they may simply be added elsewhere.

"People need to take advantage of the fact they can get a better deal somewhere else and be a bit more with their banks like we are with our mobile phone contracts," the director advises.

Lloyds TSB also intends to introduce a buffer zone of £10 for current account users to go into without charges for being overdrawn.