Citizens Advice has responded to a Competition and Markets Authority (CMA) recommendation for a monthly limit on unauthorised overdraft charges.
Gillian Guy, Chief Executive of Citizens Advice, said:
“High overdraft charges can quickly push people into cycles of dangerous debt.
“We help people with 55,000 overdraft debt problems a year - in some cases consumers are paying more in overdraft charges than they would for a payday loan.
“It’s good that the CMA is proposing a monthly maximum charge on unarranged overdrafts. This recommendation builds on progress made earlier this year to roll out fee free basic bank accounts for people in financial difficulty.
“It’s also vital the government makes sure everyone has access to free, impartial money advice to help manage their finances and prevent debt problems before they escalate.”
View related information: https://www.gov.uk/government/news/cma-wants-banks-to-work-harder-for-their-customers