Share on LinkedInShare on LinkedIn

ARTICLE · 26 FEBRUARY 2019

FCA Consultation And Policy Statement On Overdrafts

At the end of last year, the FCA published a consultation paper and policy statement on its proposed reforms to the way banks charge for overdrafts.

United KingdomConsumer Protection

At the end of last year, the FCA published a consultation paper and policy statement on its proposed reforms to the way banks charge for overdrafts. This forms part of the regulator's overall review of the consumer credit market; following previous interventions on high-cost short-term credit, rent-to-own and credit cards. 

Summary

The table below sets out a summary of the FCA's proposed measures for the overdraft market:

1. Alignment of arranged and unarranged overdraft charges - preventing firms charging higher prices
for unarranged overdrafts than arranged overdrafts
2. Overdrafts to be subject to a single interest rate only – banning daily or monthly fixed charges

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from