Andrew Bailey called the proposed action the biggest intervention “for a generation”
The UK’s Financial Conduct Authority is stepping in to tackle the “dysfunctional” market for overdrafts, accusing many firms of exploiting vulnerable consumers.
The proposals, unveiled today (December 18), aim to reduce the complexity of overdrafts, cut high charges and mitigate the harm from “repeat use”.
The regulator says financial firms made more than £2.4 billion ($3 billion) from overdrafts in 2017, with 30% of the figure coming from unarranged overdrafts. Furthermore, more than 50% of