Currently the UK does not have a cap on the interest rate charged on arranged overdrafts. My own bank charges a rate of 49.9% EAR (Effective Annual Rate). Interest applied daily.

We think a cap of 10% (still well above the current inflation rate) is fair and should be imposed by statute. These interest rates disproportionately effect the poorest in society. Are higher than most credit cards. If Labour wants to truly help the more vulnerable, we believe this would be a significant achievement