CICM welcomes FCA’s focus on unarranged overdrafts in new credit review

The Chartered Institute of Credit Management has welcomed the planned review by the Financial Conduct Authority (FCA) into high cost credit and particularly its focus on unarranged overdrafts.

Philip King, Chief Executive of the CICM, said that it was important that all high-cost products needed to be looked at: “The review needs to build a full picture of how such products are used, whether they cause detriment, and if so to which consumers, and should include not only the higher profile products but also those that make the banks millions of pounds but are often not in the consumer’s best interests.

“We would also urge the FCA to capture data and investigate in the greatest detail the extent to which consumers are moving towards the use of loan sharks and unauthorised lenders, as a last resort, where FCA measures have resulted in a reduction in the availability of legitimate high cost credit.”