Post Office statement on overdraft market

02 August 2017

Nick Kennett, Chief Executive, Financial Services & Telecoms, Post Office Ltd, today (July 31) commented on the FCA’s findings regarding the overdraft market as part of its review of the high-cost short-term credit market.

“The FCA’s plans to address complex and confusing overdraft charges is welcome news for consumers – however, changes to this market are long overdue. Our current system of free-in-credit banking is anything but ‘free’ for consumers, and has hindered real competition and differentiation of products.

“Consumers need products which reflect their lifestyles and how they manage their money. While for many of us this means a more understanding approach from providers when we dip into the red occasionally, the FCA’s report highlights the needs of more habitual and potentially vulnerable overdraft users – a minority of consumers who are incurring the majority of unarranged overdraft fees.

“These customers need products which help them to take control of their finances through the provision of clear and transparent information about overdraft costs, and plan ahead wherever possible. Post Office Money’s ‘Control Account’, which comes with a small monthly fee, is designed to do just that - ensuring customers know exactly what they are paying upfront and can avoid unexpected costs and charges.

“We look forward to working with the FCA and rest of the industry as it develops its proposals to address this market over the coming months.”