December 2018

Financial Conduct Authority set to tackle overdraft charges

The Financial Conduct Authority (FCA) has announced proposals to tackle overdraft charges as part of its review into the high cost of credit.

The FCA revealed that in 2017, firms made over £2.4bn from overdrafts, with around 30% of that figure coming from unarranged overdrafts.  Of particular concern was the fact that more than 50% of unarranged overdraft fees came from just 1.5% of customers with people living in deprived areas being more likely to be impacted by these fees. 

Debt Relief Orders hit milestone

The Insolvency Service (IS) has reported that it processed the 250,000 Debt Relief Order (DRO) in November 2018.

DROs were introduced by the Government in April 2009 as a low cost alternative to Bankruptcy for people with relatively straightforward financial situations.  DROs, which cost £90, are only available to people with less than £20,000 of qualifying debt and with assets worth no more than £1,000.  Twelve months after entering a DRO, all qualifying debt is written-off.