banks lost overdraft test case

[Ch3tan]

I have overdrawn by accident against a direct debit once. It was with RBS, who I did not have my main account with. They charged me nearly £80 for a £7 or so. the worse bit was that the initial charge was smaller, but they charged me on top for everyday I was overdrawn -but I had to wait for a letter before I knew.

Regardless to say, I moaned like hell, paid it off and closed the account.

I hear horror stories about Abbey all the time, I sometimes wonder why people bank with them at all.

I have no problems with banks levying a charge if you oversraw and do not have the facility, it was my fault after all, what I do have an issue with is the amount they charge. Why not just charge 1% of the amount you are over by, or charge interest on the amount while it is overdrawn.

 

[old.user4556]

A relevant news story.

BBC NEWS | Business | HBOS to change most bank accounts

 

[Mey]

So basicly you will be paying £30 a month for having an arranged overdraft.

GG moaning bastards we are all going to suffer now for you're poor money management.

Though I suspect when Lloyds destroy any system HBOS has in place it'll be back to normal for those of us who manage to make sure our account isn't overdrawn.

 

[old.user4556]

So basicly you will be paying £30 a month for having an arranged overdraft.

Where does it say that?

 

[Chilly]

If you dont go overdrawn, you dont get charged. QED

 

[old.user4556]

If you dont go overdrawn, you dont get charged. QED

Now that's what I read.

 

[Mey]

Instead, customers with an arranged overdraft of up to £2,500 will pay £1 per day; those with a higher arranged overdraft will be charged £2 per day; and anyone with an unarranged overdraft will have to pay £5 per day.

So if you use your "Arranged overdraft" (currently free) you pay £1 a day for it. Costing around £30 a month (if you have to use the overdraft for the whole month that is, unexpected bill or what have you).

 

[Chilly]

You're a mug if you think your arranged overdraft is free. They are charging you interest on it, unless you are a student or recent graduate (I still have 500 quid interest OD facility on my account, for example). They just changed the pricing strucuture from a APR equivalent to a flat fee for all small loans. The smaller the loan the worse the rate, conversely the closer to your OD limit the better value for money you get. In for a pound, in for a grand.

 

[Jeros]

meh. manage your finances better.

Impossible for some when you have kids and/or low wage, then again, anyone with and ounce of sense can see.........or not it would seem

 

[Chilly]

Managing finance does not mean being debt free. Debt is part of our society and economy. However, there are several types of debt ranging from ok to horrific. Unarranged overdrafts are nearer the H end of that scale. Mortgages and other secured, planned loans are the better end.

Of course there are times when you simply cannot plan to cover everything and you may have to resort to expensive debt - its just the way it is. That debt is expensive exactly because its an emergency measure - NOT an every day one.

 

[Jeros]

Yes but acting the way they are right now in the middle of a encomnic crisis is a bit off, no matter, the gov with rip em a new one, if only to keep the peeps happy, we get our money back, gov looks good, rich banks take one in the ass....oh well