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Written question asked by Jim Cunningham (Labour) on Wednesday, 27 June 2018, in the House of Commons. It was due for an answer on Monday, 2 July 2018 (named day). It was answered by John Glen (Conservative) on Monday, 2 July 2018 on behalf of the Treasury.

Bank Services: Fees and Charges

Question

To ask Mr Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Health and Social Care on the effects of bank overdraft fees on the mental well-being of people borrowing money.

Answer

Ministers have regular meetings with Ministerial colleagues and others as part of the process of policy development and delivery. As was the case with previous administrations, it is not the Government's practice to provide details of all such meetings.

Decisions on overdraft fees and charges are a commercial matter for firms. The Financial Conduct Authority (FCA) requires firms to treat their customers fairly and has broad and robust powers to enforce breaches of its rules.

As part of its ongoing work on high-cost credit, the FCA is currently consulting on measures that aim to secure greater protection for consumers using overdrafts. The consultation can be found online at: https://www.fca.org.uk/publication/consultation/cp18-13.pdf

The FCA is also considering overdraft pricing as part of its wider Strategic Review of Retail Business Banking Models. It has recently published an update on this work, which can be found online at: https://www.fca.org.uk/publications/multi-firm-reviews/strategic-review-retail-banking-business-models

The Government supports the FCA’s work in this area and will continue to work with it to ensure that all consumers who use overdrafts are treated fairly.

Secondary information

Type
Written question
Reference
158159
Session
2017-19
Transferred
Yes
Subjects
Bank services Fees and charges Mental health
Link
View this Written question on www.parliament.uk