Published On: Thu, Aug 20th, 2020

Bank account warning: HSBC and First Direct to raise overdraft charges – will it cost you? | Personal Finance | Finance

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To achieve this, the FCA announced that it would stop banks and building societies from charging higher prices for unarranged overdrafts than for arranged overdrafts and would ban fixed fees for borrowing through an overdraft – calling for an end to fixed daily or monthly charges, and fees for having an overdraft facility.

In response to these changes, many banks and building societies announced that they would raise overdraft fees to nearly 40 percent in an effort to recoup some of the lost income.

In January, the FCA wrote to several of these companies to ask them to explain and defend these increases.

Eventually, the regulator stepped in once more to halt all overdraft fee increases temporarily and limit what could be charged overall in response to coronavirus.

READ MORE: PIP warning: Your payments may come through early next week 

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