Labour pledges to cap interest payments and overdraft fees

Labour has pledged to help people caught in a “debt trap” by placing a cap on the total amount that can be paid in overdraft fees or interest payments.

Labour claims it could help an estimated 2.7 million people who it says are stuck with permanent overdrafts, saving them the equivalent of £86 each per year.

The policy was also welcomed by actor and founder of the End High Cost Credit Alliance Michael Sheen.

He said: “High cost credit is more than just pay day loans, rent to own businesses or doorstep lending. Millions of people across the UK are also trapped in their overdrafts by extortionate rates of interest charged by reputable high street banks.”

Source Sky News