UK Regulator Puts Overdraft Fees Under A Microscope

The U.K.’s Financial Conduct Authority (FCA) is looking to help combat the high fees associated with overdrafts.

The watchdog’s CEO, Andrew Bailey, said on Wednesday (July 20) that he would begin reviewing final recommendations on the matter from the Competition and Markets Authority (CMA).

According to Reuters, some of the some of the initial recommendations have proposed that banks set their own fee caps for unauthorized overdrafts.

But there are MPs who want to see a tougher crackdown in place.

“Do we implement their recommendations, or do we bring some other things to play?” Bailey reportedly asked of parliament’s Treasury Select Committee. Technically speaking, the FCA does have the authority to bypass the CMA’s recommendations if, in fact, consumers are being harmed.

“As long as the U.K. remains a member of EU, we have a duty to apply the rules, and we will do that. We are cooperative. We have no wish to disrupt these organizations, and we wish to be good citizens,” Bailey added.

Bailey stepped into his role at the FCA at the beginning of this month to replace ousted leader Martin Wheatley. The organization is dealing with greater scrutiny, as well as an increasing workload and high employee turnover, leaving Bailey to face the challenge of keeping spirits high.

“There is a very committed staff that wants to do the right thing. I am very encouraged. It’s an organization that has taken a battering,” Bailey said.