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<p>Decisions on overdraft fees and charges are a commercial matter for firms. The
Financial Conduct Authority (FCA) requires firms to treat their customers fairly and
has broad and robust powers to enforce breaches of its rules.</p><p>In its July 2017
review of high-cost credit, the FCA concluded that it had concerns about both arranged
and unarranged overdrafts. On 31 January 2018 the FCA published an update on its review,
confirming it had seen evidence of consumer harm and would be undertaking further
analysis to identify the extent of that harm, and how it might be resolved. The FCA
has committed to publishing the results of this analysis in May 2018. The FCA also
confirmed that overdrafts would be considered as part of its wider Strategic Review
of Retail Business Banking Models and that it would look to consult on any further
remedies towards the end of 2018, taking into account the findings of the Strategic
Review.</p><p>The Government supports the FCA’s work in this area and will continue
to work with it to ensure that all consumers who use high-cost credit products are
treated fairly.</p>
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