RBS’s 800% interest for 16 days in the red: Bank named as having the most expensive unarranged overdraft as watchdog threatens to ban rip-off fees

‘High street lenders are charging customers up to 800 per cent interest for accidentally breaching their overdraft limit, it emerged yesterday.
The City watchdog named Royal Bank of Scotland as having the most expensive unauthorised overdraft as it lambasted some of the big banks for charging more than payday lenders.
The Financial Conduct Authority warned rip off overdraft fees pose a risk to vulnerable customers and threatened to ban them.
It said it had ‘significant concerns’ about how unauthorised overdrafts operate, describing these charges as ‘high, complex and potentially harmful’.
The investigation found that vulnerable customers were being charged several times the amount they borrowed for dipping into their unarranged overdraft.’
Read more: RBS’s 800% interest for 16 days in the red: Bank named as having the most expensive unarranged overdraft as watchdog threatens to ban rip-off fees