Things You Need to Know About Mortgage Overcharging Check

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Things You Need to Know About Mortgage
Overcharging Check
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• Banks are to be banned from charging excessive
  fees for unauthorized overdrafts as part of the
  UK's Financial Conduct Authority clampdown on the
  "dysfunctional" mind-boggling expense credit
  sector. (Financial Times Dec 2018)
• In what the Financial Conduct Authority described
  as the biggest intervention in the overdraft
  market for a generation, it is proposing a
  simple, single interest rate for each overdraft
  with no fixed daily or month to month charges.
  And everyone is now worried about the Mortgage
  Overcharging Check.

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• Last year, firms made more than 2.4bn from
  overdrafts, with about 30 from unarranged
  overdrafts, the watchdog said. More than half the
  unauthorized overdraft fees came from 1.5 of
  customers in 2016, with people living in deprived
  areas generally affected. In some cases, these
  fees can be more than 10 times as high as charges
  for payday loans.
• The watchdog won't set a month to month price
  cap, arguing it could have unintended
  consequences, yet expects prices to fall as a
  result of competition from more transparent
  expenses.

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• The FCA says that arranged overdraft prices must
  be advertised in a standard way, including an APR
  to help customers compare them and refused
  payment fees should "reasonably correspond to the
  expenses of refusing payments" and must be
  explained.
• The FCA also told banks to accomplish more to
  identify customers who are in financial
  consultant trouble and to help them reduce their
  overdraft use without announcing specific
  measures.

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• The FCA also told banks to accomplish more to
  identify customers who are in financial
  consultant trouble and to help them reduce their
  overdraft use without announcing specific
  measures.
• Following a consultation in May, the watchdog has
  already ordered firms to provide online tools
  that allow customers to check on the off chance
  that they can get a cheaper overdraft elsewhere,
  along with calculators that translate interest
  rates into pounds and pence. It has also asked
  for mobile phone alerts and changes to how
  overdrawn balances are displayed at cash
  machines.

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• The FCA chief executive, Andrew Bailey, said
  "These changes in Mortgage Overcharging Check
  would provide greater protection for a large
  number of people who use an overdraft,
  particularly the most vulnerable. It is clear to
  us that the way banks manage and charge for
  overdrafts needed fundamental reform.
• "We are proposing a series of radical changes to
  disentangle the way banks charge for overdrafts
  and tackle high charging for unarranged
  overdrafts. These changes would make overdrafts
  simpler, fairer, and easier to manage."

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