We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
StepChange Debt Charity logo

Free advice on problem debt
based on what's best for you

0800 138 1111 Freephone (including all mobiles)

StepChange Debt Charity reaction to FCA response to the CMA retail banking market investigation

3 November, 2016

Reacting to today’s Financial Conduct Authority (FCA) response to the Competition and Markets Authority (CMA) retail banking market review, Mike O’Connor, Chief Executive of StepChange Debt Charity said:

“I welcome the FCA’s acknowledgment that the CMA remedies do not go far enough in addressing the systemic problems in the overdraft market. Dealing with the harm caused to consumers who are trapped in persistent overdraft debt is now an acid test of the FCA’s commitment to its consumer protection obligations. We are seeing consumer detriment now, so lengthy delays in implementing suitable reforms risks further harm to people in financial difficulty.

“The FCA acknowledges overdrafts as a form of high-cost short-term credit and we are pleased that the issue will be included in the forthcoming review of the payday loan cap. Any review of the monthly maximum charge (MMC) cap is not due to take place until late 2018 and it is unclear what, if any, action will be taken in the shorter-term to fix an overdraft market that is failing those in debt. Regulators have acknowledged the need for caps in other markets, including credit cards and payday loans, and there is a clear need for the FCA to set a monthly maximum charge cap for overdrafts.

StepChange Debt Charity overdraft statistics 2016

  • In the first six months of this year, the charity advised 93,000 people with overdraft debts, with the average amount owed being £1,679.
  • In a survey of 1,019 clients with overdrafts the charity found that they used their overdraft in 11 out of 12 months.
  • Nearly two thirds (62%) of survey respondents had gone over their limit in the last year and did so in an average of five of the past 12 months.
  • 39% of respondents revealed that they faced average charges of £45 each time for using an unarranged overdraft, adding around £225 a year to their debts.

Notes to editors

  1. StepChange Debt Charity provides free and independent debt advice by telephone and through its online Debt Remedy tool.

StepChange Debt Charity news contact

Contact the StepChange news team on:

Tel: 0207 391 4598

Mobile: 07985 404 153

Email: press@stepchange.org

Follow our press team on Twitter: @StepChange

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

*This is the average rating of our service based on the StepChange reviews on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2016