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CMA measures ‘unlikely to go far enough’ on overdraft charges

​Money Advice Trust comments on CMA Retail Banking Investigation report.

 
The Competition and Markets Authority (CMA) has today published the report of its retail banking market investigation, announcing several measures to improve competition in the market. A breakdown of the announced remedies is available here.
 
Jane Tully, director of external affairs at the Money Advice Trust, the charity that runs National Debtline, commented:
 
"We are pleased to see Open Banking data sharing and easier account switching at the centre of the CMA’s proposals for retail banking. Event-based ‘prompts’ to ensure that customers are encouraged to shop around at key points are particularly welcome.
 
“For customers in financial difficulty, however, high unauthorised overdraft charges are a far more pressing concern. 
 
“The CMA’s proposed monthly maximum charges are a small positive step, but are ultimately unlikely to make the difference required. Their impact should be reviewed early – and the FCA should be prepared to step in with an industry-wide cap if they do not significantly reduce the charges being paid by people who fall into difficulty.”
 
National Debtline offers free advice at www.nationaldebtline.org or on 0808 808 4000, Monday to Friday 9am to 8pm and Saturday 9.30am to 1pm.
 
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