Penalties imposed by banks on customers who exceed their overdraft limits continue to come under intense scrutiny, with overdraft penalty charges proving to be the bane of customers' lives and a major reason for the increased number of complaints received by financial institutions in the last year or more.

Bank charges were the most frequent gripe of the 3,500 people who contacted the Banking Code Standards Board's helpdesk in 2005 – with this number itself proving to be a very significant rise on the 1,200 calls recorded the previous year.

With overdraft penalty charges still looming large in the minds of fearful consumers this increase in complaints should hardly come as a surprise – especially as some financial providers have increased their charges by as much as 25 per cent over the past 12 months.

Some financial providers charge as much as £39 for exceeded overdrafts or bounced cheques and debits – which seems like something of a harsh punishment when somebody oversteps the mark by no more than a few pounds.

With the OFT having recently ordered credit card providers to cap their charges for late payment fees, hopes are high that such regulations will be spread across the board for all kinds of penalty charge – but there is a long way to go.

Being aware of what you're getting into with a financial provider is certainly the order of the day, as Defaqto head of banking Richard Black explains, saying: "There is responsibility from both sides: the customers and the banks.

"People are more aware of what is on offer, thanks to the media and especially the personal finance journalists. Make sure you don't just look at the advertised rates but also the small print, especially any charges that you may be liable for."

Banks are thought to be making well in excess of £3 billion each year from consumer charges – but a lack of transparency can often mean that people are not well versed on the drastic implications of not running an extremely tight financial ship.

On some occasions a payday loan ( ) may be suitable to prevent you from reaching a situation whereby you'll be receiving some unexpected and unwelcome charges. With this service you know exactly where you stand – the fee you pay on top of your loan will not exceed £25 for every £100 borrowed, and with a maximum short term loan of £1,000 you're not going to be committing to a service which could prove crippling. By paying the loan back in full on your next payday, you also avoid getting caught in any revolving credit or seeing your pay getting eaten up by charges from the previous months.

A reputable firm such as My Payday Loan ( ) can help you out if, for example, you have incurred a sudden expense which might leave you at risk of a penalty charge without bolstering your finances temporarily. Such short term cash can tide you over and help you see to your affairs until your next payday, when it will be paid back at a time when your financial position should look stronger.