UK’s FCA to act on banks using overdrafts as revenue source
Regulator proposes rules to improve transparency around the cost of credit
The UK’s Financial Conduct Authority is considering “radical options” to prevent banks from using overdraft fees as a source of revenue.
Today (May 31), the regulator published the findings of its high-cost credit review. This revealed banks made an estimated £2.3 billion ($3.07 billion) from overdrafts, 30% of which were from unarranged facilities.
The FCA report also said some non-bank consumer lending practices were causing harm. It said it was considering a number of reforms for the sector
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