More than 50% of banks' unarranged overdraft
fees came from just 1.5% of customers in 2016.
The highest percentage of overdraft
income was reported by Southern Bancorp Bank of Arkadelphia, formed 30 years ago to provide services to lower-income and rural Arkansans.
More than 50 per cent of banks' unarranged overdraft
fees came from just 1.5 per cent of customers in 2016.
FCA chief executive Andrew Bailey said: "The overdraft
market is dysfunctional, causing significant consumer harm.
The UK financial services regulator said firms made GBP2.4 billion from overdrafts
alone in 2017, with around 30% of this coming from unarranged overdrafts
"Following our changes we expect the typical cost of borrowing [pounds sterling]100 through an unarranged overdraft
to drop from [pounds sterling]5 a day to less than 20 pence a day.
Andrew Bailey, the boss of the Financial Conduct Authority (FCA), told MPs yesterday that the regulator wants to bring the pricing of unarranged overdrafts
more in line with that of arranged overdrafts
to stop firms from charging higher prices.
Money managing director Jenni Allen said: "Finally, banks will no longer be able to charge rip-off unarranged overdraft
charges, which have long penalised their customers, many of whom can afford it the least."
As Steven Frances tweeted me: "@martinslewis Had a PS200 overdraft
about 2 years ago, that crept to PS500, then PS1,000 within a year, its so easy for this to happen.
That's compared to customers with First Direct, who charge no interest or fees on overdrafts
up to PS250 - so a PS285 overdraft
will cost just PS1.56 a year.
13 ( ANI ): Private banking major ICICI Bank on Tuesday announced the launch of an instant overdraft
facility for the Micro, Small and Medium Enterprises (MSME) customers in a completely online and paperless manner.