FCA tackles overdraft rules on new consultation paper
The Financial Conduct Authority (FCA), the UK’s financial regulator, has released a consultation paper proposal on overdrafts as part of its review of high-cost credit.
The regulator’s proposals require firms to publish overdraft prices and fees.
In the paper, the regulator’s proposals require firms to publish overdraft prices and fees as part of the current account information services, among other minor changes to competition rules.
The FCA says it wants to improve transparency and raise awareness on firms’ overdraft charges.
To help firms improve customer experience, the FCA is changing its rules on auto enrolment into alerts.
The regulator has warned that these changes are relevant for providers of personal current accounts, specifically firms who provide overdrafts; consumers who use overdrafts; as well as consumer groups.
“Our measures support our consumer protection objective by addressing the harm we have identified in the overdraft market,” says the regulator. “They will also promote more effective competition for overdrafts.”
This consultation closes on 7 August 2019.
Recently, the regulator introduced rules to protect investors in the P2P sector.
