News The Banks win - you lose :p

[rynnor]

BBC News - Banks win Supreme Court case on overdraft charges

Rather a poor judgement really because it doesnt say what to do with the thousands of cases on hold since 2007 so basically this will end up back in the courts again...

 

[Mey]

*clears throat*

Told you so.

 

[Raven]

If they hadn't judged in the banks favour we would only have to bail them out again anyway so its probably for the best. Not had a bank charge in about 15 years so can't say I am that bothered really

 

[ECA]

Yay Usury is legal.

 

[Chilly]

dont spend more than you have

 

[rynnor]

I find the terms staggering tbh - lets look at an example of going £1 into 'un-arranged overdraft' for 10 days at lloyds tsb.

First they charge you £15 for going overdrawn, then £6 a day for the first £24 - by day 2 you are now on the next dailly charge - £15 a day - by day 7 you owe them £102 - now your paying £20 a day.

So you endup paying £162 for going £1 overdrawn - thats equivalent to an APR of 583,200% - impressive huh?

Nothing dodgy going on there

 

[Chilly]

I find the terms staggering tbh - lets look at an example of going £1 into 'un-arranged overdraft' for 10 days at lloyds tsb.

First they charge you £15 for going overdrawn, then £6 a day for the first £24 - by day 2 you are now on the next dailly charge - £15 a day - by day 7 you owe them £102 - now your paying £20 a day.

So you endup paying £162 for going £1 overdrawn - thats equivalent to an APR of 583,200% - impressive huh?

Nothing dodgy going on there

I admit it's a bit dodgy since they could just as easily reject the transaction. However, I think high penalties are good in the long run because it increases financial discipline - which is clearly lacking these days in many people.

 

[nath]

I admit it's a bit dodgy since they could just as easily reject the transaction. However, I think high penalties are good in the long run because it increases financial discipline - which is clearly lacking these days in many people.

But surely not having access to money that you don't actually have would increase that discipline too.

 

[Moriath]

Its not like they hide the charges you can go look at their rules and charges when ever you like.

Just dont spend what you dont have and alls happy.

Its all this generation of must have this that or the other and not wait.

 

[rynnor]

Its not like they hide the charges you can go look at their rules and charges when ever you like.

Just dont spend what you dont have and alls happy.

Its all this generation of must have this that or the other and not wait.

I sympathise with that viewpoint but the blatant profiteering the banks employ is pretty sick tbh - it would cost them nowt to decline all these transactions instead of looking to profit from those in trouble - its like financial ambulance chasing.

 

[ECA]

They make more money of forcing people into debt than they do from sensible loan/saving banking.

Our government doesnt want to do it's job and regulate it, so they get away with it.

Vote labour, fuck yourself.

 

[Embattle]

I tend to think while the charges are a little excessive at times I also must admit that I don't support the customers since going into an overdraft shows poor money management but then to go over your agreed overdraft is just stupid. All to often we seem to think that it is someones else fault that we suck at dealing with our own money.

 

[Moriath]

There will always be two views to this those who have been charged and those who havent

I suggest that those angry about the verdict are from the former camp

I can never imagine going into an over draft let alone over an agreed one.

If you cant afford something you cant afford it.

I get annoyed with all these ppl that complain they never have enough money and have to use this that or the other and smoke and drink ..

if you dont have the money you cant do it simple as.. if you steal money from the banks .. for it is what you are doing taking money without permission. then they have a right to charge you for doing that

 

[Fweddy]

Last month a colleague was sorting out his car insurance renewal. He rang up the insurance company to check which account they'd be taking the money from, and transferred enough to that account to cover the cost. The insurance company then took the money from a different account, causing him to go over his limit and be charged by his bank.

Did he manage his money badly?

 

[rynnor]

There will always be two views to this those who have been charged and those who havent

I suggest that those angry about the verdict are from the former camp

I have never been in un-authorised overdraft or paid any fee's - hell I've never failed to pay my credit card off each month in full/ dont have any loans barring a low mortgage so your wrong.

I still find it obnoxious that these charges are so excessive even though they may alleviate the need for me to pay a fee for my current account - its just wrong.

 

[Uara]

I dont go into my overdraft as I really view it as something I may have to go into if i need to pay for something urgently (via some unexpected event). My issue is that if you can't afford to pay off the charges then they're going to keep on racking up until you magically manage to find the funds to pay it off. (and yes I accept the view point that they should have managed their finances a hell of a lot better). Its just a vicious circle.

 

[old.user4556]

Did he manage his money badly?

No, and in situations like that you'll find that the bank will probably be more than happy to reverse the charge.

 

[Chilly]

No, and in situations like that you'll find that the bank will probably be more than happy to reverse the charge.

If not the insurance company itself.

 

[Tom]

This is only a victory for the banks (AFAIK) in that the OFT cannot decide what is a fair or unfair charge.

There's nothing to stop you taking your bank to court and pressing with an individual claim. The bank cannot reasonably defend a £35 overdraft charge. Its excessive, and unlawful.

 

[Moriath]

This is only a victory for the banks (AFAIK) in that the OFT cannot decide what is a fair or unfair charge.

There's nothing to stop you taking your bank to court and pressing with an individual claim. The bank cannot reasonably defend a £35 overdraft charge. Its excessive, and unlawful.

erm surely its not unlawful as they would have allowed them to investigate it if they thought it was unlawful

you talking out of your arse again

 

[Tom]

I really can't sum up the enthusiasm to respond to the above.

 

[Moriath]

I really can't sum up the enthusiasm to respond to the above.

an obvious contradiction cause you responded by not responding in that manner ... being an arse again

 

[Tom]

Yeah, whatever. Now fuckoff, ****.

 

[Moriath]

no

 

[SilverHood]

I'm all for overdraft fees if you go overdrawn. 35 is not unreasonable as long as it stops there. If you go 5 quid overdrawn, there's no way you should end up with a 500+ quid bill like someone I know, and they had 2 grand in another account with the bank in question!!

 

[Moriath]

would you go to the guy who lives next door and take 10 quid without asking ?

Whats the difference with taking an extra tenner you dont have with the bank .. its all taking what you dont have agreement for ...

so instead of shopping you to the old bill they charge you 35 quid

sounds simple to me

nothing wrong with that

 

[nath]

would you go to the guy who lives next door and take 10 quid without asking ?

Whats the difference with taking an extra tenner you dont have with the bank .. its all taking what you dont have agreement for ...

so instead of shopping you to the old bill they charge you 35 quid

sounds simple to me

nothing wrong with that

That's an incredibly simplistic view of it Moriath, it's entirely possible for people to go overdrawn without realising it/as a mistake. Besides, if you have no agreement to go overdrawn with the bank why don't the banks just block charges when it gets to that point, or even throw up a warning that this will go overdrawn and incur charges. Strikes me that'd be well within their power to do so.

 

[Moriath]

That's an incredibly simplistic view of it Moriath, it's entirely possible for people to go overdrawn without realising it/as a mistake. Besides, if you have no agreement to go overdrawn with the bank why don't the banks just block charges when it gets to that point, or even throw up a warning that this will go overdrawn and incur charges. Strikes me that'd be well within their power to do so.

they would be .. but i bet they get a lot more complaints about it than charging ppl a fee

 

[nath]

Too bad, if someone has no overdraft arrangement and runs out of money in their current account they shouldn't have access to money.

 

[Moriath]

Too bad, if someone has no overdraft arrangement and runs out of money in their current account they shouldn't have access to money.

fair enough ... i agree .... but its all the ppl out there that think they should have unlimited credit that need telling