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UK: Overdraft fees could be capped as CMA delays banking report

By  |  March 7, 2016

Monthly overdraft fees could be capped to protect customers who regularly rack up steep charges, the Competition and Markets Authority has said.

Under new proposals banks could be forced to notify customers by text, email or app alert when they are close to their overdraft, in their overdraft, or have had a payment declined.

The competition watchdog’s proposed shake-up of the rules on overdrafts comes as it delayed a wider report looking at competition in retail banking.

The CMA had hoped to make its final proposals to improve competition in the personal current account market and the small business banking sector in May, but has put the deadline back to August, in part to allow banks to digest its new proposals on overdrafts. Interested parties now have until March 21 to make submissions to the inquiry.

Full content: The Financial Times

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