Overdraft fees to become cheaper for millions of Brits after FCA intervention

Overdraft fees to become cheaper for millions of Brits after FCA intervention”

These rules will come into effect in April 2020 and will change the nature of overdraft facilities in the United Kingdom significantly.

Additionally, there will no longer be higher fees for unarranged overdrafts than arranged ones, the UK's finance regulator said.

Further reforms published today, include the requirement for banks and building societies to help customers compare overdrafts by using an April when advertising arranged overdrafts, pricing overdrafts more simply using an annual interest rate and ensuring refused payment fees reasonably reflect the costs of declining the actual payments.

- Requiring banks and building societies to do more to identify customers showing signs of financial strain or in financial difficulty, and put strategies in place to reduce repeat overdraft use.

This has impacted not just the pockets of many United Kingdom bank account holders, but also many peoples' credit ratings; as they fail to repay an unarranged overdraft immediately, the charges roll on, costing them more and impacting their chances of getting credit, mortgages, getting access to future finance and even the money they may need to borrow to renovate their existing home (more information). Andrew Bailey, its chief executive, said: "Vulnerable consumers are disproportionately hit by excessive charges for unarranged overdrafts, which are often ten times as high as fees for payday loans".

Bailey said it was a radical set of measures that would make overdrafts fairer, simpler and easier to manage.

Banks made over £2.4billion from overdraft fees in 2017, with around 30% of that figure coming from unarranged overdrafts.

Most of the new rules will come into force by 6 April 2020, with some taking effect immediately.

"Consumers can not meaningfully compare or work out the cost of borrowing as a result of complex and opaque charges, that are both a result of and driver of poor competition".

He added: "The decisive action we are taking will give greater protections to millions of people who use an overdraft, particularly the most vulnerable".

"The changes can't come soon enough".

New bank rules have been announced.

She said: "Today's interventions from the FCA are long overdue".

Previous research showed those aged between 35 and 44 were most likely to have some form of overdraft, and about 10% of all 18 to 24-year-olds had exceeded their overdraft limit in the previous 12 months.

"We would always urge customers to speak to their bank and arrange an overdraft in advance to ensure payments are honoured".

Like this



09 Июня 2019
Plant more trees to beat air pollution: Kerala forest minister
Nelson Nwosu, made the call yesterday in Aba while speaking with journalists on World Environment Day . India has repeatedly failed to address environmental concerns.

09 Июня 2019
Nokia 2.2 press render surfaces ahead of the official launch
While battery capacity hasn't been disclosed, Nokia is claiming both devices will have a two-day battery life. Interestingly, the phone also comes with a removable back panel that can be customized with Xpress-on covers.

09 Июня 2019
Five facts to know about Barty's Roland Garros win
Cricket lovers were also quick to congratulate the Australian , taking a little bit of credit for her rise in the world of tennis. The Ipswich-born talent powered through the first set in just under half an hour, breaking her 19-year-old opponent three times.

09 Июня 2019
Measles surpass 1,000 cases in the US
The best way to end this outbreak is by ensuring that all the children and adults "who can get vaccinated, do get vaccinated". This is an increase of 20 cases from the CDC's last official update of 981 confirmed cases in 26 states on Monday, June 3.

09 Июня 2019
Sri Lanka president vows to block Easter attacks probe
Halfway through the testimony, the live telecast of the proceedings was stopped on the president's orders, official sources said. The government has admitted there were intelligence failures before the attacks, in which 45 foreign nationals died.

09 Июня 2019
UK Prime Minister Theresa May formally steps down as Conservative Party leader
She announced her resignation, saying she had done everything she could to try to persuade MPs to support the withdrawal deal. She became the party leader after Cameron's departure and the second female prime minister of the country on July 13, 2016.

09 Июня 2019
Manchester United confirm first signing for 2019/20 season
Manchester United have announced they have agreed a deal, in principle, to sign Daniel James from Swansea. The more optimistic fans felt that James had the potential of becoming the next Ryan Giggs at United.

09 Июня 2019
Kroger Recalls Frozen Berries that Might Have Hepatitis A
The FDA informed Kroger of the contamination after a sample of the Private Selection was tested and was found to be contaminated. When exposed to contaminated food, a vaccination can prevent the illness if given within two weeks.

09 Июня 2019
Valentina Shevchenko: Is winning the UFC belt or defending it tougher?
If you enjoyed this story, please share it on social media! The action kicks off at 6:15 p.m. If you sign up to a service by clicking one of the links, we may earn a referral fee.

09 Июня 2019
‘Dark Phoenix’ Has Worst Opening in X-Men History
OK Marvel, let's see what you can do! Jennifer Lawrence and Sophie Turner in Dark Phoenix , Twentieth Century Fox, 2019. The very end of the movie includes a voiceover from Jean, now Phoenix , as she watches over Professor X from above.