ChipX and FCA High Cost of Credit review

With the HCoC regulations taking effect in March there are going to be a lot of conventional bank overdraft users looking for cheaper alternatives (Nationwide are the only bank to have revealed their standard overdraft rate so far, 39.9% :scream:).

Will ChipX be in a position to capitalise on this in time? I know that at least one major bank will be writing to its millions of customers in December (I can’t say who, and likely most banks will be operating on a similar timeline) to articulate their new pricing. They will provide a calculator to compare new vs old overdraft costs and if timed right, Chip could easily attract the borrowers the platform will need as people realise that the incumbents’ offering is about to become extremely poor value, approaching payday lender pricing.

6 Likes

I too believe that Chip needs to time this perfectly or else it will miss its opportunity. We need to get cracking right now or else the ship will sail…

1 Like

It would be great for the team to get the advertising in alignment to take advantage and catapult our beloved Chip into the hearts and minds of everyone across the UK. (feeling patriotic)

We have a lot of different bits and pieces in the pipeline… you’ll see. :wink:

@gbolton2008 thanks for sharing relevant and actionable regulatory updates such as this. :pray:t2:

If you haven’t read it already, I suggest looking at the FCA publication on the subject. It is in a plain English format and quite easy to digest.