There’s not a lot of firm commitments in this press release but
The CMA recommended that the FCA research, test and implement measures to increase consumers’ engagement with their overdraft use and charges, and the FCA will take action in response to this recommendation. The FCA will also consider the need for rules in relation to the proposed Monthly Maximum Charge (MMC) and will begin to collect data in 2017 in order to do this.
I’m guessing that any recommendations here will be easy for Monzo to implement, as the recommendations will have to be watered down so that the legacy banks can implement them.
The FCA will also consider the need for rules in relation to the proposed Monthly Maximum Charge (MMC)
In addition, beyond the scope of the CMA’s recommendations, the FCA will also undertake work on overdrafts (both arranged and unarranged). This will fall within the FCA’s future work on high-cost credit and the FCA will publish more detail on the scope of this work in a Call for Input later this year.
This might have an impact on Monzo though, as if banks were forced to reduce their charges for planned / unplanned overdrafts, they would become more competitive (unless they just move their fees somewhere else ).
Monzo overdrafts hopefully won’t fall into the high cost credit bracket though because -
There’s more on Monzo’s overdrafts here -