Labour pledges cap on overdraft fees and interest payments

Labour said the policy could help 2.7 million people who are stuck with permanent overdrafts
Labour says it would cap the total amount anyone could pay in bank overdraft fees or interest repayments.

Shadow chancellor John McDonnell said he wanted to end the "national scandal" of low paid families trapped in debt.

Labour said the policy could help 2.7 million people who are stuck with permanent overdrafts, saving them the equivalent of £86 each per year.

The Treasury said it had already tightened the rules to protect debtors and cracked down on payday loans.

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Mr McDonnell said: "Too many families are having to rely on borrowing just to get to the end of the month, and are facing huge costs from our High Street banks.

"The national scandal of the low paid debt trap has to end. More needs to be done to level the playing field and bring greater fairness in consumer finance."

source:www.bbc.com