Falling into arrears on mortgage repayments and other borrowing is costing debtors more than they think, an expert has warned.
Louise Cuming, head of mortgages at prince comparison site moneysupermarket.com, claimed people experiencing problems meeting payments are being hit with "punitive and unjust charges".
She argued that while many lenders are keen to offer funds to borrowers, they are less sympathetic when the debtor struggles.
"Lenders aren’t charities but no one wins if they automatically burden customers with more fees and debt," Ms Cuming argued.
Many customers will be unaware that their banks charge for the letters they send, she stated.
Last year, Citizens Advice warned that vulnerable borrowers were being lent to irresponsibly, leading to an increase in repossessions and mortgage arrears.
It claimed that mortgage lending to those who cannot afford it does not help them towards a valuable asset but rather drives the debtor into debt and homelessness.