South Park Money

Au revoir, overdraft charges (maybe)

Banks could be banned from charging you when you go over your OD limit

It’s a pretty familiar scenario for most of us. You get to the end of the month, spend a little too much, have to pay an unexpected bill, just can’t quite stretch your cash out, and your bank helpfully lets you get into the red. Until, kowabunga, they’ve charged you £30.

An organization called the Financial Conduct Authority (FCA) – which kind of acts to police banks behavior and makes sure they’re acting fairly – is saying it could ban banks from charging fees. If your bank did lend you that money, you’d still have to pay it back, probably with interest.

Some banks have already stopped charging fees. Barclays just won’t lend you that money, for example. Lloyd’s is saying it will stop charging fees from November.

The FCA’s got previous in this stuff. In 2015 it went after payday lenders – they lend you money in advance of your payday, then you pay it back once you’ve got some cash, with a ton of interest.

The problem is, payday lenders were lending people money who couldn’t prove they could afford it, in some cases they couldn’t even afford to pay the interest off.

The FCA put an upper limit (called a cap) on how much payday lenders could charge in interest – no more than twice the original amount borrowed. It’s saying that the 760,000 people who use payday loans companies have saved a total of £150 million this year, that lenders are less likely to lend to people who can’t pay them back, and that fewer people have turned to debt charities this year.

Recent articles

Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?