Overdrafts

The Financial Conduct Authority (FCA) has today announced it will help make current accounts more open and competitive by developing a range of prompts and alerts for customers to review their bank account choices and overdraft use.

Charity StepChange received a record number of requests for help with problem debts between January and June this year, it has revealed.

A report by the competition watchdog ordering monthly unarranged overdraft fees to be capped has been criticised by the Treasury Committee for not going far enough.

If you had a NatWest or RBS student current account between November 2002 and March this year and you haven't already been contacted about receiving a refund for wrongly charged interest, you can expect a letter detailing how much you're being refunded by 1 November.

Banks have been told they must take part in an "Open Banking revolution" and allow customers to manage their accounts with multiple providers through a single digital app by early 2018, as part of a package of measures designed to "shake up retail banking for years to come".

The competition watchdog's set out plans to cap fees for busting your overdraft limit. This should help, but don't wait. Overdrafts are a debt like any other - the key is to cut the rate, repay faster and avoid any penalties.

The competition watchdog has called for monthly unarranged overdraft fees to be capped as part of its recommendations to overhaul the way banks work.