Martin Lewis issues warning on £500 interest free overdrafts – ‘tailored support!’

Martin Lewis, Money Saving Expert, is well-known for offering money-saving tips and tricks to people who are hoping to save money. The financial journalist uses his various platforms to provide Britons with the latest information which could help their finances. His assistance has been particularly invaluable amid the ongoing COVID-19 crisis, and the financial difficulties which have ensued for many as a result.

While payment holidays have been extended, Martin warned there has been no extension relating to overdrafts.

The £500 interest free overdraft many banks provided during the first lockdown has now all but vanished.

This means many will be left in a more complicated situation when it comes to approaching an overdraft.

Nevertheless, this does not have to be the end of the road for people when it comes to a challenging financial situation.

However, under Financial Conduct Authority (FCA) rules, banks are obliged to help their customers in some way if they are approached explaining financial difficulties.

Martin added: “A blanket ‘no’ from your bank is simply not good enough.”

If having trouble with a bank, Martin said Britons can instead approach the Financial Ombudsman.

By doing so, they may be able to obtain emergency help and intervention processed as quickly as possible to assist those in financial straits. 

Some banks may be willing to extend an interest-free buffer, however, this is likely to vary depending on providers.

However, overdraft rates for some facilities can be high – ranging from 19 percent to 40 percent – so it is important to take action.

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip