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Bank overdraft cap could be re-examined, says FCA
Bank overdraft cap could be re-examined, says FCA
This is a duplicate of the Blog Entry made on: 3rd November 2016 19:16
This is a duplicate of the Blog Entry made on: 3rd November 2016 19:16
A decision by the competition regulator not to recommend a cap on excessive overdraft charges could be re-examined, the Financial Conduct Authority says.
In its report on bank accounts published in August, the Competition and Markets Authority (CMA) decided against a cap on charges. However the FCA has now announced that it is to examine the issue in detail itself. It said its inquiry could look at a compulsory limit on overdraft charges. Christopher Woolard, executive director of strategy and competition at the FCA, said it would take action to improve competition in the current account market.
And he said the question of overdraft charges would be a priority. "Our role in regulating retail banking markets goes beyond the remedies the CMA has asked us to take forward, and we will continue to look more broadly at how well these markets work, with a particular focus planned on high-cost credit including overdrafts.".....Read more here
In its report on bank accounts published in August, the Competition and Markets Authority (CMA) decided against a cap on charges. However the FCA has now announced that it is to examine the issue in detail itself. It said its inquiry could look at a compulsory limit on overdraft charges. Christopher Woolard, executive director of strategy and competition at the FCA, said it would take action to improve competition in the current account market.
And he said the question of overdraft charges would be a priority. "Our role in regulating retail banking markets goes beyond the remedies the CMA has asked us to take forward, and we will continue to look more broadly at how well these markets work, with a particular focus planned on high-cost credit including overdrafts.".....Read more here