Paul Masterton MP has welcomed today’s proposals to ban banks from charging rip-off unarranged overdraft fees that regularly penalised the most vulnerable customers and cost some people thousands of pounds a year.
Paul joined with consumer champion Which? and over 80 fellow parliamentarians in May in signing a 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.
The FCA have 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.
East Renfrewshire MP, Paul Masterton said:
“I have had a number of constituents get in contact with me over rip-off unarranged overdraft fees. It is quite simply unacceptable for large banks to pray on the most vulnerable customers. Having joined the campaign back in May, I am delighted to see the FCA’s new proposal. This could be a turning point for those stuck in a cycle of debt. ”
Jenni Allen, Managing Director, Which? Money, said:
“Finally, banks will no longer be able to charge rip-off unarranged overdraft charges, which have long penalised their customers, many of whom can afford it the least.
“Which? has campaigned on this issue for years and today's strong action from the regulator will come as a massive relief for all those regularly hit with such extortionate charges, which cost some people thousands a year.
“The regulator must now ensure these important changes are swiftly introduced and enforced to finally stop this unfair practice and put an end to these excessive fees."