FCA - Overdrafts

I have seen that Nationwide and Santander have conform to the FCA requirements - was wondering if any one else has yet?

Only banks with fixed overdraft fees…Barclays will be next ?

I like HSBCs overdraft - best cheap overdraft option for me from legacy bank

Yeah that is what I am expecting - just wondering when they get moving

I believe Starling don’t have to change anything in regards to their overdrafts, as they’ve never charged fixed daily fees to start with.

Isn’t it also about abolishing the distinction between authorised and unauthorised overdrafts too?

i.e. if the bank hasn’t agreed to an overdraft but inadvertently you go in to one (i.e. contactless that didn’t get authorised online) then they have to treat you the same as if you had an authorised overdraft.

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Yes, this is also happening!

Great news, FCA regulation forcing up overdraft rates. Following on from Nationwide, HSBC with its 39.9% rate.

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To be fair, force would be the FCA telling banks the rate has to be 39.9%.

The bank pushing up one rate because they’re told they can’t screw money in other places is… Well, let’s be charitable… A ‘business decision’.

Let’s see if 39.9% winds up being ‘competitive’.

In the meantime, HSBC says that this new rate will still end up being cheaper for 7 out of 10 customers who use their overdraft facility - shows how much money they were making by charging £5/day to people who don’t have money.

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