When coronavirus struck new rules forced banks to offer people in trouble a £500 interest-free overdraft, and outright banned them from raising rates. (Image: Getty Images/Cultura RF)The problem comes because the regulator decided overdrafts were too complex, so banned all charges except the interest rate. "When the first coronavirus help came, what they said was 'no one should be charged more'," Martin said. "In April the regulator introduced up-to-£500 interest-free overdrafts for 3months - under the new proposals, these will be extended," he explained. "For those struggling due to coronavirus, on request, the first £500 of authorised overdrafts can be interest-free for a further 3months.

Source: Daily Mirror June 25, 2020 19:52 UTC