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Has anyone else had a nice text from their bank today telling you to get into credit by 11.45 this evening or else
I used to like FD but you now wait 6mins to connect if your lucky and the phone line often drops and just like the others 40% interest
All the same % how does that work ?
I think the OD thing was due to banks being old they can't charge penalties for going over the limit, so they unanimously went **** you then, we'll just screw near all overdraft users with 40% interest.
Still the first £250 is interest free on my FD account, they gave us a years warning this was coming and they delayed the introduction due to Covid so we could get our finances in order...
Suspect there will be a few people with new and unexpected charges levied to their accounts this month.
Or else what? Genuinely curious,
Has anyone else had a nice text from their bank today telling you to get into credit by 11.45 this evening or else
Is this not a useful warning message - you have pending transactions that will take you into your overdraft. It takes minutes through the online banking / app to move funds around and avert potential charges.
Or else what?
As above, they're warning you of potential charges due to pending overdraft usage.
Is this not a useful warning message – you have pending transactions that will take you into your overdraft. It takes minutes through the online banking / app to move funds around and avert potential charges.
Good job everybody has various pots of money available to move around and avoid charges.
It is a disgraceful change in the regulations, that punishes the poorest and most vulnerable, cheered on by the wilfully ignorant.
As i understand it the Govt policy was meant to stop banks levying punitive charges on accidental overdrafts, but it had the perverse impact of forcing their hand in applying higher charges to all overdrafts.
The FT says:
Regulators say that seven out of 10 customers will pay the same, or be better off, than they would previously have been.
No such thing as a friendly bank.
If you are ever in financial trouble tell them last or they will be the first in line to kick you in the bollocks.
Oooof - Wonder if my colleague is aware - he's lived at the bottom of his overdraft since he got there at uni. Reasonable paying job, he's on his second house, doesn't have expensive tastes, and has married fairly well... but still think he might struggle to rustle up the neccessary thousands at short notice.
Govt policy was meant to stop banks levying punitive charges on accidental overdrafts, but it had the perverse impact of forcing their hand in applying higher charges to all overdrafts.
Fancy a government policy having unexpected consequences...
This may explain why a mate was asking if anyone could give him a few thousand quid on FB yesterday 🤦♂️
40% is unreal, I still cant believe it is allowed.
Oooof – Wonder if my colleague is aware – he’s lived at the bottom of his overdraft since he got there at uni. Reasonable paying job, he’s on his second house, doesn’t have expensive tastes, and has married fairly well… but still think he might struggle to rustle up the necessary thousands at short notice.
It's that kind of borrowing that the legislation is trying to stop.
My wife was the same, she had a £2k OD limit on her 'Recent Graduate Account', she was only earning about half that - not that it mattered. They used to show "Available Funds" on her Banking App rather than the actual balance and they'd take £30 or more a month in interest.
As above, banks LOVE this kind of borrowing, the principle is never paid off, they just take a high interest rate month after month, year after year - shit I know people who've used a OD 30 days of the month for decades.
The truth is, if the bank will give you an OD at 20% APR (pre-reg changes) then they'd give you a loan at 10%, it would be the smartest move in the world to swap the OD for a personal loan and pay it off at £42 a month instead of £30 a month in interest alone and go nowhere. , but almost no one did because they either didn't like the 'Debt' (almost no one saw ODs as Debt) or they just didn't know.
As for hurting the poor, I've seen how bad things can get, £200 a month in 'fees' for various bounced DDs and unauthorised payments. It's sickening really, the "The Payment Accounts Regulations act 2015" was a godsend for the poor (and franky poor as money management) they showed how banks could operate if they wanted to - no fees or charges, no ODs just somewhere save to put your money that came with an App / Online Banking / Debit card and DD facility.
I do, however have some sympathy for Banks, they're being squeezed, the word is out on Account Charges, PPI bleed them dry and this will hopefully end their OD scam - but they have to make money somehow, we demand online banking, an extremely robust and secure debit card and ATM system, protection from fruadsters, most banks still have Braches for some unknown reason but we don't want to pay for it, in fact we'd like a bit of money each month in exchange for them holding our wages until we spend them.