FCA consults on tacking bank overdraft charges

As part of its ongoing work to tackle high cost credit, the FCA has announced proposals to restrict the charges banks are able to impose for overdrafts.

The FCA is proposing a package of measures that include stopping firms from charging higher fees for unannounced overdrafts, controlling overdraft charges, and requiring firms to work more with customers who are showing signs of being in financial difficulties.

In addition to banks and building societies, certain of the proposals may also affect payment service providers that operate payment accounts which charge for refused payments.

Comments on consultation paper CP18/42 are invited by 18 March 2018.