Excessive bank overdraft charges in the firing line

The Financial Conduct Authority (FCA) is investigating bank overdraft charges as part of a review of high interest loans following a two-year inquiry by The Competition and Markets Authority. The CMA spent two years investigating high street banks, an inquiry which was wound up in August last year. It decided against imposing a limit on overdraft fees despite evidence that such charges cost poorer consumers more than payday loans. Instead, the CMA said that the banks should be forced to publish lists of monthly maximum charges (MMCs) that customers must pay for exceeding their overdraft limits. Following the CMA review, the FCA launched an investigation into what it called “high-cost, short-term credit” charges including overdraft fees, payday loans and doorstep credit. While the CMA had asked the FCA to look at every area it covered in its review, the governing financial regulator said that it would also consider whether new regulations were needed to cap monthly maximum overdraf


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s