Rachel Reeves MP, Labour Member of Parliament for Leeds West and member of the Treasury Select Committee, responding today’s publication of the Competitions and Markets Authority (CMA) final report of the retail banking market investigation, said:
“This report is a missed opportunity. It doesn’t go nearly far enough to tackle excessive overdraft charges.
“The CMA could have recommended tough action to help those who are getting a raw deal from the banks, for example by calling on the Financial Conduct Authority (FCA) to set a monthly maximum charge (MMC) which applies both to authorised and unauthorised overdrafts rather than leaving it up to the banks to decide what any charge should be, but it failed to rise to the challenge.
“To make sure millions of people get a better deal the FCA must now step in and take the necessary steps to protect the most financially vulnerable from rip-off overdraft charges, as it did with payday lenders.”