Commenting on the FCA’s proposal for an overdraft overhaul and a ban on fixed-fee overdrafts and the forthcoming rate hikes, CEO of credit experts TotallyMoney, Alastair Douglas, said:
“The overdraft market is confusing and needs to be more transparent. It isn’t right that some banks can charge its customers up to four times more than its competitors for authorised borrowing.
“Reform in this area is needed, bringing it in line with other types of debt. Currently, the market is far too complicated, unfair, and doesn’t work in the interest of customers. It’s virtually impossible to work out if you’re getting a good deal or not.
“Customers with some of the biggest high-street names will be subject to higher charges when new tariffs kick in during the next three weeks, so these changes from the regulator can’t come quickly enough.
“The FCA’s proposal to ban fixed fees and address complexity will make it easier for customers to understand the costs involved, protecting overdraft users from excessive charges”.