Fees for unplanned overdrafts are to be scrapped for the 20 million customers of Lloyds Banking Group, which includes the Halifax and Bank of Scotland. From November this year, any customer going over their overdraft limit will face no fees at all, Lloyds said. However, the bank may continue to block payments from the account until the overdraft is paid off. It follows criticism of high charges by consumer groups and the Competition and Markets Authority (CMA). The Financial Conduct Authority (FCA) is also expected to propose measures on overdraft fees within the next few weeks, as part of its inquiry into high-cost creditPreviously Lloyds customers taking out unauthorised overdrafts faced interest payments at an annual rate of 19.89%, a daily charge of up to £10, the monthly charge of £6, and up to £30 a day for returned (unpaid) items. These will all now be abolished. Fees for missed payments from basic bank accounts will also disappear. Lloyds said that it expected to make less money as a result of the changes, although it said fewer people now use an unauthorised facility than used to be the case. As well as scrapping charges for unplanned overdrafts, Lloyds is also simplifying fees for planned overdrafts, making it cheaper for many customers to borrow. Those with overdrafts of less than £500 are likely to pay less, while those borrowing more than £1000 are likely to see higher charges.