Today I’ve written to the Financial Conduct Authority (FCA) together with supportive MPs calling on them to take action on banks charging extortionate fees for unarranged overdrafts. Whilst these fees are part of banks’ business models, they are almost always massively out of proportion with the actual overspend and hit people already in financial difficulty very hard. The Labour Party is committed to capping these unarranged fees. This is an important step towards protecting vulnerable customers.
The FCA’s latest figures show that vulnerable people with financial difficulties are being treated as cash cows by the banks, getting repeatedly hit with these charges. It’s symptomatic of a banking culture that treats people as assets to exploit rather than customers to be served. Unarranged fees are just one aspect of unfair banking practice. I have led two debates in Parliament exposing the dreadful treatment of small businesses by banks and the campaign for an inquiry into unfair banking is growing.
See my letter to the FCA below: