A PROPOSAL to ban banks from charging rip-off unarranged overdraft fees has been welcomed by East Renfrewshire’s MP.

Paul Masterton is behind the plans to stop the crippling fees which regularly penalise the most vulnerable customers and cost some people thousands of pounds a year.

In May, Paul joined with consumer champion Which? and more than 80 fellow parliamentarians in signing a letter calling on the Financial Conduct Authority to bring an end to these excessive charges. 

Which? has been campaigning on this issue for years and welcomes strong action from the regulator.

The FCA have announced banks will no longer be able to charge higher prices for people who go over their arranged overdraft limit in radical new proposals.

Mr Masterton said: “I have had a number of constituents get in contact with me over rip-off unarranged overdraft fees. It is unacceptable for large banks to prey on the most vulnerable customers. Having joined the campaign back in May, I am delighted to see the FCA’s new proposal. This could be a turning point.”