Labour MP Rachel Reeves, who is a member of the Treasury select committee, has called on the Financial Conduct Authority to protect vulnerable customers by setting limits on charges for unauthorised overdrafts. each year, the Competition and Markets Authority (CMA) said that banks should declare a maximum charge for such overdrafts, but failed to impose mandatory restrictions on pricing. The CMA, whose final report will be published by 12 August, hopes to halve the £1.2bn currently paid Last week by customers in overdraft fees. The authority also wants price comparison websites to encourage customers to change banks in search of the best deal. However, switching is often difficult for those with overdrafts. At present, Lloyds, Royal Bank of Scotland, HSBC and Barclays provide 77% of current accounts.
Labour MP Rachel Reeves, who is a member of the Treasury select committee, has called on the Financial Conduct Authority to protect vulnerable customers by setting limits on charges for unauthorised overdrafts. Last week, the Competition and Markets Authority (CMA) said that banks should declare a maximum charge for such overdrafts, but failed to impose mandatory restrictions on pricing. The CMA, whose final report will be published by 12 August, hopes to halve the £1.2bn currently paid each year by customers in overdraft fees. The authority also wants price comparison websites to encourage customers to change banks in search of the best deal. However, switching is often difficult for those with overdrafts. At present, Lloyds, Royal Bank of Scotland, HSBC and Barclays provide 77% of current accounts.