The National Association of Bank Customers (NABC) has warned small businesses of the risks of not checking their bank statements properly after it found that more than 50 per cent of such customers were being overcharged.
The NABC has estimated that between 30 per cent and 60 per cent of commercial accounts suffer from excess bank charges. The association, which has 17,000 members, discovered more than #1 million in overpaid charges. One commercial account holder had lost #50,000.
A representative at NABC said one common problem is that a company which goes over its agreed limit may be charged up to 29 per cent interest without being informed by its bank. Existing bank statements make it very difficult for the customer to discover this.
He blamed the banks? antiquated and multi-layered computer systems for many of the problems. He also criticised them for failing to take any action to improve the situation.
A representative at the British Bankers Association denied the charges, claiming the basis of NABC?s figures was flawed because all its members were firms that had problems with their banks anyway.
The warning comes at the same time as Max Martin, managing director of Acton Computer Supplies, revealed banking problems over a disputed advert.
Martin had a dispute with a local paper over payment for an advertisement and stopped a #235 cheque made out to the publishing company. The paper responded by contacting Transax, the cheque guarantee company, which blacklisted Acton Computer Supplies for non-payment. As a result, Martin can no longer trade with many of his suppliers as they will not take his cheques.
Transax said by stopping a cheque, Acton Computer Supplies had breached an agreement and was therefore liable to be put on the at risk list. It said the correct course of action was to honour payment and pursue the matter through the courts.
Highlander MD Steve Brown tells CRN about the skills he learned on the pitch and brought to the boardroom
Reports suggest Dell is pursuing a straightforward IPO, contradicting existing plans to buy out tracking stock holders
Analysts predict upturn in PC market next year, but 2018 to remain plagued by components shortages
Neil Sawyer claims he has 'never seen so many conversations about a new method of investing in workplace technology'