1100% interest rate on unauthorised overdraft

[OwenM]

I got a statement on a current account today from one of the big irish banks, there was a charge of €2.54 in debit interest and I was puzzled by it so I checked the previous six months transactions. The account was overdrawn for a couple of days in August in the amount of €27.85.

So I rang the bank and asked why the charge was applied to be told it was an interest charge (Not a fixed charge) on the overdrawn amount. I confirmed the amount and duration with her and she confirmed I was charged interest of €2.54 on an overdraft of €27.85 for three days!

I have asked for a copy of the terms and conditions of the account to be posted out to me.

I calculate the interest rate to be 1100%, anyone else think this is incredible?

 

[Sunny]

€2.54 is the minimum charge.

 

[OwenM]

I specifically asked was it a fixed charge or an interest payment to be told it was an interest payment? If this is the case then Ok but the information I got over the phone wasn't very good then?

 

[jhegarty]

Looks like it's a £2 minimum interest charge.