Bank interest charges rip off

[Gromit]

// No payday loan lender charged an APR of more than 5,000% but two banks - Santander and Lloyds TSB - charged an equivalent APR of more than 300,000%.

Barclays would charge a customer using a personal reserve - a pre-agreed emergency borrowing facility - £22 for every five consecutive working days they were in it. This means customers would pay £88 on top of the £100 capital after 28 days - an equivalent APR of 366,000% //

http://www.bbc.co.uk/news/business-16002022

Surely such eyewatering rates are unjustifyable?

[emmie]

not right, never has been, i was charged a staggering, to me, 35 quid for going 1 pound over my overdraft, and that wasn't even my fault, but a company who direct debited my account earlier than they should have, needless to say i gave both bank and company that did it both barrels. I got my money back, but it shouldn't happen.

[bednobs]

not sure that the article is right - one of the ones i saw on tv the other day had an interest rate of 5500%

[Kayless]

perhaps but why do people think they can spend money they don't have?