WARRINGTON South MP Faisal Rashid – who previously worked for NatWest – has called on Lloyds Banking Group to scrap its new overdraft system.

The Labour politician made the calls in a letter to the bank, which was co-signed by 19 of the party’s fellow MPs.

The system, introduced in January, could see customers who become overdrawn by less than £1,250 be required to pay an annual interest rate of 61 per cent.

The letter calls for a full explanation of the company’s reasons for bringing it in, along with ‘reminding’ the group of its moral responsibility to the British taxpayer after being ‘bailed out during the financial crisis to the tune of £20.3 billion’.

NatWest accepted Mr Rashid’s resignation after he won the Warrington South seat in June 2017.

He said: “Before being elected as the MP for Warrington South, I worked in the banking and finance industry for 20 years.

“I know from personal experience that responsible financial institutions can be drivers of positive change and shared prosperity.

“It is therefore deeply disappointing that Lloyds Banking Group has taken the decision to introduce these new overdraft charges.

“They represent an opportunistic and irresponsible form of lending, which damage the integrity of the financial services industry.

“While the measures are not illegal under existing regulations, it is concerning to see Lloyds proclaim itself as a company committed to ‘helping Britain prosper’, while introducing measures which seem designed to maximise profits from customers before the existing fee structure is banned by the Financial Conduct Authority next year.

“My Labour colleagues and I are urging Lloyds Banking Group to rethink the changes and to abandon this ill-conceived fee structure.”