This Consultation Paper sets out further proposals on overdrafts as part of our review of high-cost credit. It should be read alongside PS19/16 High-cost Credit Review: Overdraft policy statement and CP18/42.
These proposals require firms to publish overdraft prices and fees as part of the current account information services (service metrics) and minor changes to the competition rules made in CP18/42.
We are proposing to require firms to publish a range of overdraft prices and fees along with their quarterly service metrics. We want to improve transparency and raise awareness on firms’ overdraft charges.
We also propose to change the definition of private bank in the competition remedy rules (BCOBS 8) and our current account service metrics rules (BCOBS 7) to align it with the definition used in the pricing rules confirmed in PS19/16, and to exempt foreign currency accounts from the competition remedy rules.
To help firms improve customer experience we are also proposing changes to our rule on auto enrolment into alerts.
This document should be read by:
Our measures support our consumer protection objective by addressing the harm we have identified in the overdraft market. They will also promote more effective competition for overdrafts.
Our proposed disclosure remedy is intended to complement the rules in PS19/16. The amendments we propose to our competition rules are designed to achieve the objectives set out in CP18/42 and align these with the new rules in PS19/16.
This consultation closes on 7 August 2019.
You can respond by answering the questions in our online response form.
You can also respond by emailing [email protected].
We will consider your responses and publish any amendments to rules in September 2019.