Banks should stop making it so easy for us to get into overdrafts

It's hitting the most vulnerable the hardest, FCA says

The Financial Conduct Authority (FCA), who set the rules for the financial industry, think we're in too much debt (didn't need you guys to tell us that but thnx.)

What it means: Brits are borrowing money at the fastest rate they have since November 2016, reaching levels of debt that aren't too far from where we were around the 2008 crash. It's the usual story: wages aren't growing fast enough + we all have bills to pay which just aren't getting any lower.

But the financial industry could do more to help prevent us from getting into this much debt. The FCA has made a proposal saying a few changes to the way banks communicate to us about overdrafts, for example, could change our behaviour: like sending us a mobile alert when we're close to going into overdrafts, and not labelling them 'available funds'.

The thing is, banks make £2.3 billion from fees for overdraft charges every year, so in some ways it's in their interest to rack up our debts.

But people say this is exploiting some of the most vulnerable in society: 30 per cent of those fees come from a small minority of customers in tough situations, like young single parents needing pay day loans, who end up paying on average £450 per year in fees.

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