Struggling families being offered improved overdraft facilities after our campaign
Struggling families are being offered improved overdraft facilities after action by the Financial Conduct Authority (FCA)
The FCA suggested banks offer interest-free overdrafts of up to £500 for three months and temporary payment freezes on loans and credit cards.
The FCA warned firms not to put customers in a worse position following planned overdraft rate rises earlier this month.
The Financial Conduct Authority suggested banks offer interest-free overdrafts of up to £500 for three months and temporary payment freezes on loans and credit cards
Money Mail had previously called on banks to delay the charge hikes and waive fees.
Lloyds Banking Group – which includes Lloyds, Halifax Bank of Scotland and HSBC – now offer customers £500 interest-free overdrafts for three months from April 9. Previously it was £300.
Credit card customers of the Lloyds Banking Group can ask to have their interest frozen for 30 days and a three-month payment holiday.
HSBC is temporarily reducing its overdraft interest rate from 39.9 per cent to 19.9 per cent and suspending late credit card fees for three months.
Santander customers will also be given a 0 per cent overdraft of £500 between April 6 and July 9.