Banks should end charges for unplanned overdrafts to help more than two million people escape long-term debt.
That is the finding of the StepChange Debt Charity, which says people are being trapped in a vicious cycle of bank charges sending them back into the red each month, generating more charges again.
The charity also says it has found evidence of unaffordable lending in the overdraft market where banks have failed to offer their customers a means to deal with overdraft debt – even when customers have made it clear they are in financial difficulty.
Overdrafts are one of the most common credit products used in the UK,” said Peter Tutton, head of policy at StepChange Debt Charity.
“They are meant to be short-term, but our …
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