“In April, after a change in regulations, almost all banks planned to increase overdraft rates at an annual rate of 40%, or double that of a major retail credit card, overdrafting new debt. dangerous, ”he said.
“While at the start of the pandemic, the Financial Conduct Authority (FCA) temporarily halted these cost changes and said that for three months no one would pay more in the new 40% cost system than previously, when the overdraft aid was extended. , that “no one should pay more” has become “no one fighting the pandemic should pay more”.
TSB, Halifax, Lloyds and Bank of Scotland have all done it before and Santander and Nationwide are expected to end it in the coming weeks, Coventry Live reports.
Watch: Martin Lewis Urges People To Ditch Main Street Savings Accounts For “First Payer”
On the show, Martin also said, “And since many banks have reintroduced their overdrafts by 40%, if that means you’ll pay more, and you’re struggling due to the financial impact of the coronavirus, talk to your lender to bring it down. .
“We’re seeing banks bringing in this 40% overdraft now, so if you’re paying more than before April, because of that 40% overdraft and you’re affected by the pandemic, contact your bank.
“Say” no, you can’t do that. I don’t want to pay more than before ”. But you have to watch him now.
“This comprehensive aid is ending and it is targeted to people who are currently affected by the pandemic. Look at her urgently. ”
The FCA recently announced that it will not force lenders to continue reducing overdraft rates except in the case of those financially affected by Covid-19.