VIDEO: Overdraft charges are designed to trap you long-term

by 31 Jan, 2020

This week the UK’s Financial Conduct Authority celebrated effectively banning unarranged overdraft charges, but the result is everyone will now pay around 40% APR, hammering those that already account for 80% of overdraft borrowing: customers trapped inside their overdrafts all year.

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For all of the statistics I quote, see: ‘High-cost Credit Review: Overdrafts‘, Financial Conduct Authority, May 2018’ pp.50-54

And here for the FCA’s ‘Assessing creditworthiness in consumer credit’ 2017 report, conspicuously leaving out overdrafts.

And here for my article for iNews, covering the stories of Issac and Carly

 

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About the author

About the author

Rebecca Jones

A financial journalist and communications consultant for nearly a decade, Rebecca has worked across national media, b2b, charities and for the UK’s most established sustainable investment team.