CMA maximum charge on unarranged overdrafts good news for consumers
Citizens Advice has responded to a Competition and Markets Authority (CMA) recommendation for a monthly limit on unauthorised overdraft charges.
Gillian Guy, Chief Executive of Citizens Advice, said:
“High overdraft charges can quickly push people into cycles of dangerous debt.
“We help people with 55,000 overdraft debt problems a year - in some cases consumers are paying more in overdraft charges than they would for a payday loan.
“It’s good that the CMA is proposing a monthly maximum charge on unarranged overdrafts. This recommendation builds on progress made earlier this year to roll out fee free basic bank accounts for people in financial difficulty.
“It’s also vital the government makes sure everyone has access to free, impartial money advice to help manage their finances and prevent debt problems before they escalate.”
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.