In a study of the financial sector, moneysupermarket.com revealed that the number of fees charged had increased over the past 12 months, with mortgages accounting for 51 different penalty charges, up from 46 the previous year.
Commenting on the findings, Stuart Glendinning, managing director of moneysupermarket.com, said: “It is galling that people are facing more penalties than last year, despite the Office of Fair Trading and the Financial Services Authority (FSA) turning their attention to the issue.”
He added: “It is understandable that banks want to make up any profit lost by the clampdown on fees. But we are seeing sneaky tactics by some providers, who are renaming charges or introducing a new fee in their place.”
Hugh Nichols, partner at Badbury Berkeley Financial Services, said the practice was wrong, and contravened the FSA’s ‘Treating Customers Fairly’ guidelines.
He said: “How can you justify the costs? A number of lenders have got rid of exit fees following FSA action, but have just put it under a different name. I think it is ludicrous.”
