“The steps outlined today, to provide customers with better information and an improved switching experience, are welcome. However it is questionable whether these measures will be enough, not only to increase competition but also to ensure banks deliver a better service for their customers.
“It is disappointing that the monthly charge cap is not actually a cap and banks will be allowed to continue to charge exorbitant fees for so called unauthorised overdrafts, rather than protect those customers that have been identified as among the most vulnerable.
“The Financial Conduct Authority must now test these remedies and decide if they measure up and will deliver much needed improvements in banking. The regulator should review unarranged overdraft charges in comparison to other forms of credit and crackdown on punitive fees.”
- Research from Which? found that consumers needing as little as £100 could be charged up to 12.5 times more by major high street banks than the Financial Conduct Authority allows payday loan companies to charge when borrowing the same amount for the same period. More detail on the research is available – https://prod-wordpress-press.internal.which.co.uk/whichpressreleases/overdraft-charges-more-expensive-than-payday-loans/