Dec 4, 2019
HSBC to bring in single overdraft rate of 40%
HSBC is to bring in a single overdraft rate of 39.9% for UK customers from March 2020, as much as quadrupling the rate it charges some customers. Madhu Kejriwal, HSBC UK's head of lending and payments, said: "By simplifying our overdraft charging structure we are making them easier to understand, more transparent and giving customers tools to help them make better financial decisions." The move comes in response to Financial Conduct Authority's plans to shake up the "Dysfunctional" overdraft market - including stopping banks and building societies from charging higher prices for unarranged overdrafts than for arranged overdrafts. There have been concerns that banks will hike authorised overdraft charges to claw back some revenue lost from unauthorised overdraft fees. The FCA has acknowledged banks may look to increase their arranged overdraft prices as a result of the new rules.
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