Rip-off overdraft fees to be ripped up

I welcome today’s announcement of proposals to ban banks from charging rip-off unarranged overdraft fees that regularly penalise some of my most vulnerable constituents, in some cases costing people thousands of pounds a year.

Earlier this year, I joined with consumer champion Which? and over 80 fellow parliamentarians to send a joint letter calling on the Financial Conduct Authority to bring an end to these excessive charges. Which? has been campaigning on this issue for years and welcomes today\s strong action from the regulator.

Today the FCA announced that banks will no longer be able to charge higher prices for people who go over their arranged overdraft limit, in radical new proposals set down by the UK’s financial watchdog.

The regulator must now ensure these important changes are swiftly introduced and enforced to finally put an end to these excessive fees.