Bank customers paid out £650m in penalty fees last year

Research from new multi-platform financial management tool suggests 'accidental' bank penalties are on the rise.

British consumers have paid nearly £650m in credit card and bank account penalty fees in the past year, according to research from the UK's first fully-secure, multi-platoon finance management service OnTrees.

Nearly two million people have incurred a late payment fee or unauthorised overdraft charge in the past three months, which is a 29pc increase on the previous three-month period.

An estimated 11 million, or 25pc, of the British population now have financial products with more than one bank. Three million have a current account, savings account, and credit card with different companies, which is causing the confusion driving the increase in shock charges.

More than a quarter, or 27pc, of those asked cannot remember all the providers that they bank with, with two out of five being unable to recall the balance of their current account.

These findings are the result of a study by OnTrees, a new online service which enables consumers to access all of their bank accounts in one place.