Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

“We may at last be hearing the death knell of charges for breaching overdraft limits”, says MoneySavingExpert.com

In an exclusive blog for MoneySavingExpert.com, the FCA says it will look at changes to unarranged bank overdrafts

By Guy Anker

31 July 2017

In an exclusive blog for MoneySavingExpert.com, the FCA says it has “significant doubts about whether unarranged overdrafts can continue as they are” and has announced it will look at whether fundamental changes are necessary as part of its review into high-cost credit. It has also said that the price cap on payday loans is staying put, which means people will never have to pay more than double what they originally borrowed.

 

Guy Anker, managing editor at MoneySavingExpert.com said: “It’s welcome news that the payday loans price cap will stay, and we’re happy to hear that the FCA is looking to extend its reach into bank charges. Payday loans should always be seen as a loan of last resort so whatever the price, those in debt should seek out other measures - such as getting debt help - before turning to these in a crisis. 

 

“We may at last be hearing the death knell of charges for breaching overdraft limits. Lloyds - including Halifax & Bank of Scotland - has already announced a plan to scrap these charges. I hope others follow whether on their own accord or via regulatory action, as bank charges have long been a scourge. They're punitive, designed to be tough to repay, resulting in charges on charges leaving some owing £1,000s."

 

Chris Woolard, Executive Director of Strategy and Competition for the Financial Conduct Authority has written an exclusive blog on the announcement for MoneySavingExpert.com. View it here.

 

-ends-

 

For further comments and interviews, please contact:

Katie Watts

Tel: 020 3846 2631

Mob: 07875 415 378
katie.watts@moneysavingexpert.com

 

About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. It was set up in 2003 for just £100, and its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly MSE’s Money Tips email, and more than 16 million unique monthly site users who visit more than 28 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.

 

 

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out