You’ll have probably seen the recent outcry in the papers and online, following the decision by the main UK banks to radically increase the cost of borrowing for customers with an agreed overdraft facility. These rate hikes follow an overhaul imposed by the city regulator Read More
Following recent intervention from the Financial Conduct Authority to stamp out excessive unauthorised bank charges, the banks have responded by hiking their overdraft rates for customers with agreed or authorised overdrafts – many lenders will now be charging between 35% EAR and 49.9%EAR – the Read More
From November this year Nationwide Building Society will be charging customers 39.9% EAR – yes that’s right 39.9% EAR for agreed overdrafts on its current accounts. At the moment Flex Direct Customers pay 50p per day and FlexAccount customers pay an interest rate of 18.9% Read More
The table below highlights why the FCA today announced that it wants to abolish fixed fee overdrafts – you can see how much of an income generator it is for some of the big banks.
The Financial Conduct Authority has today announced some wide ranging proposals to overhaul the overdraft market. The key changes it is looking for are: Ensuring the price for each overdraft will be a simple, single interest rate – no fixed daily or monthly charges. Tackling Read More