MSE News: Overdrafts cost too much, financial watchdog says

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"Overdrafts are to be investigated by the Financial Conduct Authority after it found borrowers are paying too much..."
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Overdrafts cost too much, financial watchdog says

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  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    The regulator that thinks paid for in-credit bank accounts are the way forwards.
  • innovate
    innovate Posts: 16,217 Forumite
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    Can't remember when they limited how much payday lenders can charge, and restricted their practices to something that is commonly considered fair. Can someone remind me?
  • innovate
    innovate Posts: 16,217 Forumite
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    The regulator that thinks paid for in-credit bank accounts are the way forwards.
    And clean accounts that have no introductory bonus.

    So here we go, another "popular" push that is likely to result in everyone having to pay more for their banking, and get less out of it.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    innovate wrote: »
    Can't remember when they limited how much payday lenders can charge, and restricted their practices to something that is commonly considered fair. Can someone remind me?

    The trouble with media coverage is that no one knows what's involved to run a business.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Use of overdrafts has become a 'habit' for consumers,

    This is the real direction of the FCA's attack one suspects.
  • melvis
    melvis Posts: 6,006 Forumite
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    I've been "living in" my overdraft for many, many years. I didn't mind paying the £7-£10 a month charges, it was just another monthly outgoing I accounted for. Now, my bank have increased my charge to £20 a month (without warning :mad:) but it's given me the kick up the bum to pay it off and I'll have done so within the next 2 months :D
    Small business owner 🧵 Ex MSE comper 🏆 Student loan repayer 💴 Romanian dog rescuer 🐕 Hopefully a cost of living survivor 🤞🏻
  • innovate
    innovate Posts: 16,217 Forumite
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    melvis wrote: »
    I've been "living in" my overdraft for many, many years. I didn't mind paying the £7-£10 a month charges, it was just another monthly outgoing I accounted for. Now, my bank have increased my charge to £20 a month (without warning :mad:) but it's given me the kick up the bum to pay it off and I'll have done so within the next 2 months :D
    They won't have it done without warning, but the relevant bit is that you got a wake-up call and are getting rid of your overdraft - congratulations! Hope you are with a bank that actually pays you interest for being in credit (TSB, Lloyds, Santander, nationwide etc).
  • MABLE
    MABLE Posts: 4,087 Forumite
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    Disgusting I call it. If I use my overdraft the first £100 is free and then 10.9 per annum. Should never be allowed!
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    MABLE wrote: »
    Disgusting I call it. If I use my overdraft the first £100 is free and then 10.9 per annum. Should never be allowed!

    Can't tell whether you a jesting. But assuming you are not - what should not be allowed, and why not?
  • MABLE
    MABLE Posts: 4,087 Forumite
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    Archi_Bald wrote: »
    Can't tell whether you a jesting. But assuming you are not - what should not be allowed, and why not?

    Apologies I was just being flippant. For me a very good deal and has not changed in years.
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