New bank accounts `to offer overdraft opt-out`

17 March 2010

The OFT (Office of Fair Trading) is calling on banks to make it easier for customers to opt out of access to unauthorised overdrafts, according to the BBC.

This would mean that people attempting to buy something they could not afford would automatically have their payment blocked.

In response, HSBC has introduced a new bank account with a strict overdraft limit which cannot be exceeded unless an increase has been formally agreed. It is possible that other banks will follow suit.

A spokesperson for Think Banking said: "At present, some people end up paying hefty fees because they have exceeded their overdraft limit without even realising it.

"People who find it difficult to keep track of their finances could benefit from a managed bank account, in which a financial expert helps them manage their money so they can avoid any unexpected charges."

Tags: bank account, banks accounts, overdraft, unauthorised overdraft, unauthorised overdrafts

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