In recent years, the Financial Conduct Authority (FCA) has been scrutinizing high-cost credit products such as overdrafts. This also refers to the rent-to-own, home-collected credit, and catalog-credit markets. Are you a merchant interested in high risk merchant account forum? How can find a reputable merchant services provider that can help you get the best for your business needs? Just read the article and you’ll know.
UK Banks’ Overdraft Business: High Risk Merchant Account Forum
In May 2018, the UK markets regulator began applying tougher rules to the 2.3 billion-pound ($3 billion) overdraft business of the banks. It’d become necessary for lenders to make overdraft fees clearer and alert customers to potential charges under proposals the Financial Conduct Authority (FCA).
According to the London-based regulator, it’s important to take stiffer measures in this regard. Specifically, it’d would better to ban fixed fees and tackle steep prices for unarranged overdrafts. Andrew Bailey, the Financial Conduct Authority’s chief executive, notes that the FCA still needs to apply a “more fundamental change” with regards to how banks charge for overdrafts.
The Financial Conduct Authority aims to introduce these changes in they are needed by April 2019. In addition, the regulator proposed other disclosure requirements concerning firms that’re involved in collecting credit at borrowers’ homes. As the regulator mentioned, this could save consumers 34 million pounds a year.
If you’re a merchant interested in all the changes in the field and a high risk merchant account forum, be sure to turn to a reputable merchant services provider or payment processor. For this, just look for a payments expert in the UK that can offer you’re the best deal for your business.
A true specialist in the field will offer you free consultation, contract reviews, rates, and fees so to help you find the right processor to work with. So, apply to a reliable and experienced payment specialist the goal of which is to be certain you’re getting the most honest snapshot of the company at the time of our writing.
What Does the Financial Conduct Authority Say?
According to the warning of the Financial Conduct Authority, most unarranged overdraft charges were paid by not more than 2% of current account customers.
By the way, there’re banks that have already put a limit on unarranged fees. However, they could become mandatory for new regulations. The estimates in the field show that banks earned £2.3billion from overdrafts in 2016. Almost 1/3 of which stems from unarranged overdrafts with sometimes £5 or £10 a day for account for just a few pounds over the limit.
In fact, only 1.5% of customers are affected by these charges. By the way, most of them are paying about £450 per year.
According to a spokesperson from UK Finance, it’s been a priority for the industry to help customers manage their day-to-day finances in recent years. The FCA has also warned that there isn’t anything like “free banking.”
The FCA’s review is based on the information collected from 45 firms. These include banks of various sizes, building societies, specialist lenders, as well as new digital banks.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry, including a high risk merchant account forum, has helped thousands of business owners save money and time.