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<p>Treasury Ministers and officials meet regularly with colleagues across Government,
and the various regulators, to discuss a wide range of issues. As was the case with
previous Administrations, it is not the Treasury's practice to provide details of
all such discussions.</p><p>As part of the final report on its retail banking market
investigation, published in 2016, the Competition and Markets Authority (CMA) imposed
a series of remedies in relation to overdrafts, including a legal requirement on banks
to set a monthly maximum charge for unarranged overdraft charges. Most banks have
been required to do this since August 2017. The CMA will monitor compliance with its
Order. As recommended by the CMA, the Financial Conduct Authority (FCA) is reviewing
the effectiveness of the monthly maximum charge for unarranged overdrafts.</p><p>Following
the CMA’s investigation, the FCA also committed to look in more detail at both arranged
and unarranged overdrafts as part of its broader review into the High Cost Credit
sector. The FCA published a Feedback Statement on its review of high-cost credit in
July 2017, which concluded that it had concerns about both arranged and unarranged
overdrafts.</p><p>The FCA will investigate these concerns further, and where intervention
is needed and justified, aim to bring forward proposals in Spring 2018 concerning
both overdrafts and other forms of high-cost credit. The FCA’s review of the effectiveness
of the monthly maximum charge for unarranged overdraft charges will inform the FCA’s
proposals on overdrafts.</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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