U.K. Banks Face Cap on Overdraft Fees, Regulator Says

Given a second chance to get tough on banks, the U.K. antitrust regulator outlined a cap on fees on customers who spend more than they have in their checking accounts, a proposal criticized as too little, too late by consumer groups.

The Competition and Markets Authority (CMA) recommended a cap on overdraft charges and a grace period for customers to avoid charges in its second report on U.K. retail banking in seven months. In 2014, banks received $1.7 billion (1.2 billion pounds) in revenue from the fees.

The recommendation is an attempt to build on reforms suggested by the CMA ...