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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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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?