The Financial Conduct Authority’s decision to ban unarranged overdraft fees could help thousands of people from staying stuck in debt, says Citizens Advice.
Research from Citizens Advice shows that extending the same rules that cover payday loans to the doorstep lending market could prevent people getting into problem debt, and save up to £123 million in interest payments.
High-profile critics of loan company Wonga, which charges extremely high interest rates that can trap poor households in debt, have come under heavy pressure. Yet action is important if those most vulnerable are to be safeguarded.
