inside business

Now is the time to act on sky-high overdraft fees

Banks have doubled rates for other customers and some may now go to the wall, writes James Moore

Tuesday 28 January 2020 20:21 GMT
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The Financial Conduct Authority wants banks to explain their overdraft prices
The Financial Conduct Authority wants banks to explain their overdraft prices

Dysfunctional” was how the Financial Conduct Authority (FCA) described the UK overdraft market when it announced a ban on the unfair charges banks currently impose on customers who go overdrawn without prior arrangement.

Trouble is, the ban has simply shifted the dysfunction from the one part of the market to another. A substantial minority of banking customers will soon see their interest bills doubling, prompting the regulator to demand an explanation.

This could yet develop into a nasty fight. But first, the background.

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