OVERDRAFT RATES OF NEARLY 40% LOOM IN 2020

OVERDRAFT RATES OF NEARLY 40% LOOM IN 2020

New rules come into effect in April

Some overdraft users who stay within their authorised borrowing limits could see their charges jump in 2020 - as several providers are poised to hike rates to nearly 40%.

The changes are being brought in as banks and building societies look to comply with new industry rules imposed by the City regulator to make overdraft pricing clearer and fairer.

The Financial Conduct Authority (FCA)'s shake-up includes stopping banks and building societies from charging higher prices for unarranged overdrafts than for arranged overdrafts.

The new rules from April 6 2020 will also ban fixed fees for borrowing through an overdraft, calling an end to daily or monthly charges.

Published: by Radio NewsHub
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