Commenting on the Lloyds new LBG Overdraft proposition, Peter Vicary-Smith, Which? chief executive, said:
“For too long, consumers have been hit with exorbitant fees when using unarranged overdrafts. Lloyds’ decision to do away with these fees is a positive step and its proposed simpler pricing will benefit many of its customers. However, not everyone will be better off, so it’s critical that Lloyds supports customers to help them avoid high charges and to reduce their level of debt.
“The Financial Conduct Authority must now use its review of high-cost, short-term credit to ensure other banks follow suit, restricting unarranged overdraft charges to the same level as for arranged overdrafts.
Notes to editors:
1. Which? reviewed the unplanned overdraft charges levied by the named banks in January 2017, on fee-free accounts with no minimum monthly payment: https://prod-wordpress-press.internal.which.co.uk/whichpressreleases/overdraft-charges-could-cost-156-more-than-payday-loans/