The consumer watchdog Which? has called for action on "virtually impossible to calculate" overdraft charges, after a study revealed that even consumers with a PhD can struggle to decipher bank fee structures.
The lobby group asked a group of volunteers to calculate the cost of unauthorised overdrafts at four high-street banks using mock bank statements and not one person was able to get all the sums right.
Even though one of the volunteers was completing a doctorate in mathematics, the group only managed to get seven out of 48 calculations right.
The research highlighted the varied and complicated fee structures used by banks if a customer unexpectedly steps into their overdraft, and subsequently the difficulty in comparing charges between institutions.
Although at first glance, overdraft fees seem easy to compare with banks charging either 'simple' daily interest or fixed fees, Which? found that each institution had its own set of extra fees and rules on unauthorised borrowing.
Researchers found Lloyds TSB (LSE: LLOY.L - news) 's charges particularly confusing, with three different types of fees - a daily fee, a monthly usage fee, and an unpaid item fee - as well as interest on the unplanned overdraft.
The bank charges a daily fee of £5 for unauthorised overdrafts of between £10 and £25, and £10 per day for overdrafts over £25.
Although there is a cap of eight daily charges in a monthly billing period, Lloyds also charges a £5 monthly usage fee if for an unauthorised overdraft of more than £10 a month, plus up to three daily unpaid item fees of £10 for unpaid items of over £10.
The study said people could also be paying five times more for the same overdraft at one bank compared to another.
For a "small" overdraft where a customer making one payment from their account which takes them into their overdraft, then making a second payment while being overdrawn for two days in a row would be charged £50 by Nationwide, but £10 at Halifax.
Louise Hanson, head of advocacy at Which?, likened some cases to notorious payday lenders.
"For example, the Royal Bank of Scotland (LSE: RBS.L - news) charges £6 per day if you go into unauthorised overdraft," she told Sky News.
"Say if you did that by about £100, that represents nearly 2,000% in APR, which is higher than some payday lenders."
Which? chief executive Peter Vicary-Smith said the findings were "extremely disappointing".
"While the Government has previously announced reforms to tackle unfair overdraft charges, they simply don't go far enough," he added.
"It's essential that the Government gives the new financial regulator the powers to limit these charges and to challenge their complexity.
"We want to see the new regulator put consumer protection at the heart of everything it does. The regulator must be a strong, open and proactive watchdog that stands up to the banks, not a lapdog."
The consumer lobby group has urged the Government to make the new financial regulator, the Financial Conduct Authority, accountable for putting a stop to unfair overdraft charges and be given clear powers to tackle excessive fees and complicated structures.
It has also called for rules forcing banks to provide electronic information to their customers about the way they use their current accounts to allow them to make 'one click' comparisons between accounts.
:: Meanwhile complaints over payment protection insurance (PPI) to the Financial Ombudsman Service spiked between October and December.
The service received 30,301 PPI complaints over the period, a 57% increase on the previous quarter.
Highlighting the impact of money worries on consumers, the overall number of complaints lodged rose by a tenth.
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