Banks to stop charging RIP OFF fees18 Dec 2018 12:34
Andrew Bailey, FCA chief executive, said the changes would be the "biggest intervention in the overdraft market for a generation".
He continued: "It is clear to us that the way banks manage and charge for overdrafts needed fundamental reform. We are proposing a series of radical changes to simplify the way banks charge for overdrafts and tackle higher charging for unarranged overdrafts. These changes would make overdrafts simpler, fairer and easier to manage."
Laura Suter, personal finance analyst at AJ Bell, welcomed the FCA's proposed changes, which she said would force banks to stop charging customers "rip-off fees".
She added: "Unarranged overdrafts are often too easy for people to fall into, with around 19m people using them each year. Someone with a £100 unarranged overdraft can pay £5 a day in charges, and the FCA plans to reduce this to just 20p a day."
Stuart Duncan, analyst at Peel Hunt, said the proposals had "the potential to have a significant impact".