The UK’s financial regulator has asked banks to explain how they have decided on their new overdraft rates. The Financial Conduct Authority (FCA) said most High Street banks had set “very similar prices” after it demanded changes to the system.
Several big brands including Santander, Lloyds Banking Group and HSBC are set to bring in a 39.9% rate this year.
The FCA has sent a letter to banks, asking them to explain what influenced their decision.
The City regulator has also asked how the banks will deal with any customers who could be worse off following the changes.