Property News · May 31, 2018

Why can't the UK cap overdraft fees? Some US states have a 7% limit


The FCA’s new measures don’t go far enough to protect consumers from sky-high bank chargesYou check your account balance at a cash machine and what do you see? You have, say, £1,200 in your account – but “available funds” of £2,200. It’s one of the tricks used by banks to encourage us into using expensive overdrafts, and it works.The Financial Conduct Authority’s review of overdrafts on Thursday revealed that 19 million of us use our arranged overdrafts every year. An extraordinary 13 million go further into the red, falling into an “unarranged” overdraft, where the fees rack up faster than a Wonga payday loan. Interest on payday loans are capped at £24 for every £100 borrowed over 30 days, yet some banks could charge £179 for going £100 beyond the arranged overdraft limit for the same period, according to Which?. Continue reading…

Source : theguardian.com
Read more…Why can’t the UK cap overdraft fees? Some US states have a 7% limit

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