Media comment: Money Advice Service responds to FCA proposals on high-cost credit, including overdrafts

Tuesday 18 December 2018

Caroline Siarkiewicz, Head of Debt Advice at the Money Advice Service commented:

“We welcome the FCA’s proposals to make overdrafts simpler and more straightforward for customers. Our evidence suggests that of the financially capable behaviours that people exhibit, it is managing credit that can have the greatest impact on their financial wellbeing. Yet we also know that 11.5 million people have less than £100 in savings to fall back on, so it is inevitable that people will use overdrafts to bridge the gap. Unfortunately, this also means paying fees or interest which can spiral.

“The Money Advice Service fully supports further engagement with the sector to ensure consumers are better informed when it comes to managing their money well. We offer a range of helpful advice and information on our website to help people find the right product for them.”