Nick Kennett, Chief Executive, Financial Services & Telecoms, Post Office Ltd, comments 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.”
About the Post Office
Post Office Limited has an unrivalled national network of over 11,600 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country.
It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services, telephony, foreign currency, travel insurance and mail services.
99.7% of people live within three miles of their nearest Post Office outlet. For many rural communities the Post Office is the only retail outlet. Post Offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk.