£25 bank charge for 33p over limit

[kylew]

I know how things work, that's why I have never had a bank charge and never will.

That's the point I was making, it's not down to you all the time is it?

 

[jp_bl_68]

I can't believe there are so many people taking the bank's side in this. It's 33p, it's not like the OP's been spending hundreds of pounds that he doesn't have.

 

[Basher]

Because they don't have the authority?

How is a failed direct debit, taking the bank's money? I'm starting to think this a question you aren't going to answer.

Failed direct debit isn't. I am refering solely to going into an unautorised overdraft as stated in the OP which I was responding to.

Id you manage money correctly, delayed wages shouldn't incur charges for going into an overdraft.

 

[dirtydog]

That's a pretty good loan rate right there!

I expect they will charge interest for every day you are overdrawn, in addition to the £1 per day fee.

I can't say I have any sympathy with the OP here. I have never been charged a fee for going overdrawn. In fact I've only gone overdrawn by a small amount, briefly, a few times. I have an authorised OD facility so that when it does happen, the charge is minimal, just interest per day, at the authorised rate - which is lower than the unauthorised rate.

 

[Gaygle]

The whole point is the fee is punitive and painful

They aren't allowed to inflict "pain" onto people. They aren't the courts and have no authority to punish people. They can only charge people for the cost incurred to them.

if it was insignificant, no one would care about being overdrawn,

You mean apart from the epic interest charges on unauthorised overdrafts and if the banks charged them for costs incurred to them?

if everyone thought it was worth going overdrawn, you start getting people all over the place taking an extra grand they don't have out for "almost free" and start using them as loans,

You'd be a moron if you started using unauthorised overdrafts "as a loan"

start using the money as a low interest loan and stick the money in stocks or something and try and make more and pay it back later.

How is an unauthorised overdraft a "low interest loan"? Banks charge up to 35% for unauthorised overdrafts. True, there are some that charge the £25 levy, then as low as 7%, but this needs to change so that the £25 fee is abolished, and the interest rates on UO are increased. But they won't do this because they know that most people don't go hundreds of pounds into an overdraft, they only go a few quid into it - which would lead to hardly any profit if they just charged interest, but would give lots of profit if they charged an instant £25 for going 1p over.

 

[Basher]

Yes, for example, or the issue I had with a botched transaction? How about how direct debits work full stop? How about they decline transactions in stead of allowing them when there isn't sufficient funds?

a) Schedule DD's appropriately to cater for this
b) build yourself a buffer

 

[Dangerous]

I expect they will charge interest for every day you are overdrawn, in addition to the £1 per day fee.

I can't say I have any sympathy with the OP here. I have never been charged a fee for going overdrawn. In fact I've only gone overdrawn by a small amount, briefly, a few times. I have an authorised OD facility so that when it does happen, the charge is minimal, just interest per day, at the authorised rate - which is lower than the unauthorised rate.

Its £1 per day for any authorised OD from £0.01 to £2500

So £30/£31 a month if you are a penny or 2.5k into your arranged OD.

 

[kylew]

Why is the bank liable for your wages delayed! It's as simple as breaching T&Cs, inuring the fees stated in the T&Cs - you did sign up to the deal after all.

I didn't say they were liable, but such things happen and they aren't a reflection on a person's ability to manage their funds.

When a Direct Debit is requested, in stead of them charging £30 to do absolutely nothing, they could just tell the party requesting the funds "sorry no money, try again later or contact your customer".

 

[mattheman]

As stated earlier, I did call them. The response was read out. I was so angry I hung up.

ok call them again if nothing happens look for another bank, its simple, you dont have to stay with them you know.
oh open another account just for DD.

 

[Dolph]

I think this sheds some light on the fairness of the situation.

http://www2.banking.firstdirect.com...07Xq0pwLZ4hlR5ohdnjkw789:11jk8o4v4?clear=true

You can request an overdraft, or an increase to an existing overdraft limit, on your 1st Account (but not on a savings account) by either:
making a formal request, that is, you ask us for and we agree to provide you with, an overdraft or an increase to an existing overdraft limit before you authorise any payments or withdrawals from your account that, if made by us, would cause your account to go overdrawn or over an existing overdraft limit;

or

by way of an informal request, that is, where you authorise a payment or withdrawal to be made from your account which, if made by us, would cause your account to go overdrawn or over an existing overdraft limit, without having agreed with us in advance an overdraft or an increase to an existing overdraft limit on your account to cover such payment.

We may charge an Arrangement Fee for arranging an overdraft for you in each situation.
Arrangement Fees
1st overdraft in 6 months free*
Subsequent overdrafts £25


*No Arrangement Fee is payable if, in the last 6 months we have not agreed to an overdraft request from you. See below for further waivers.

Arrangement Fees are accrued during your monthly statement charging period which is usually the same as your monthly statement period.

So to be charged, this must be the second time you've gone over your limit in 6 months...

 

[dirtydog]

Its £1 per day for any authorised OD from £0.01 to £2500

So £30/£31 a month if you are a penny or 2.5k into your arranged OD.

With interest on top?

 

[Jez]

I can't believe there are so many people taking the bank's side in this. It's 33p, it's not like the OP's been spending hundreds of pounds that he doesn't have.

A lot of people here are completely missing the point. The figure is irrelevant. Its a contracted service for which there are clear terms and conditions. These terms and conditions were broken. It really is as simple as that. If i can muster up the brain power to stick to the terms and conditions of the service provided by my banking account then so should everyone else.

 

[Bear]

I have a barclays and a first direct account and they implemented an additional overdraft buffer ontop of my standard overdraft facility of which I am not in either. So for me to go overdrawn on the overdraft would mean me going over on the buffer aswell.

Isnt it like this for everyone else ??

 

[Dangerous]

The proposals could mean some people face hundreds of pounds in annual fees every year.

From December 6, customers using an arranged overdraft up to and including £2,500 will be charged £1 a day for each day they use it, instead of the current typical 19.5% interest.

If they use an agreed overdraft of more than £2,500 the daily charge is doubled to £2.

One customer said the new charges were "a bloody disgrace" while another said "I am voting with my feet and looking for a new bank!"

According to MoneySavingExpert, a Halifax customer who is overdrawn by an average of £300 for 15 days a month would currently be charged around £30 a year for the privilege.

Under the new system, the annual fees would be six times higher at around £180.



The Government part owns Halifax

Speaking to Sky News, a Halifax spokesman suggested customers choose its Reward account, as they receive £5 each month provided that £1,000 goes into the account monthly.

He also said the new system is simpler, adding that customers should get in touch if they have any questions.

Customers have circulated an email highlighting the overdraft changes and urging people to complain to the Financial Ombudsman Service.

Meanwhile more than 200 people have signed a petition asking the Government to force the part-nationalised lender to scrap its plans.

Geography lecturer Martin Muir, from Glasgow, has a Halifax account which used to have a £600 overdraft limit.

On his August statement, he was warned of a minimal 5p charge for slipping overdrawn by £2 for a week. Under the new system, he'd be charged £7, or £84 if replicated over the year.

He cancelled his overdraft once he received the new charges notification, and bills will now come out of his wife, Anna's account.

Mr Muir told MoneySavingExpert: "I feel strongly what HBOS is up to is wrong. This is all done in the name of 'clarity' but I think it is outrageous. I am sure HBOS is unfairly creating extra fees for the majority of customers."

http://news.sky.com/skynews/Home/Bu...axs_Plans_To_Increase_Their_Overdraft_Charges

 

[kylew]

a) Schedule DD's appropriately to cater for this
b) build yourself a buffer

In an ideal world yes, but what if you've not got much money? People aren't taking in to account those who aren't that financially stable, they think "well, I'm fine and I've never got a charge, so those that have must have deserved it".

 

[mjt]

A lot of people here are completely missing the point. The figure is irrelevant. Its a contracted service for which there are clear terms and conditions. These terms and conditions were broken. It really is as simple as that. If i can muster up the brain power to stick to the terms and conditions of the service provided by my banking account then so should everyone else.

this.

they're not hiding anything from you.
yes, the charge isn't proportionate to the error, but tough luck. you need to watch your balance.

having said that, i feel the way its done in the rest of europe is better. you get charged a high APR on any amount overdrawn over the whole year, rather than a flat free everytime you go over. a fairer system

 

[dirtydog]

ok call them again if nothing happens look for another bank, its simple, you dont have to stay with them you know.

Changing current account providers isn't something I would describe as simple. I've been with the same one since I was 16 and I am not planning to ever change unless there is a very good reason to.

 

[Musty Pie]

A lot of people here are completely missing the point. The figure is irrelevant. Its a contracted service for which there are clear terms and conditions. These terms and conditions were broken. It really is as simple as that. If i can muster up the brain power to stick to the terms and conditions of the service provided by my banking account then so should everyone else.

Nail/Head/Thread

 

[Jez]

I have a barclays and a first direct account and they implemented an additional overdraft buffer ontop of my standard overdraft facility of which I am not in either. So for me to go overdrawn on the overdraft would mean me going over on the buffer aswell.

Isnt it like this for everyone else ??

No, but is this not a wholly pointless service? I have my overdraft set at a level which provides sufficient buffer anyway.

 

[Basher]

In an ideal world yes, but what if you've not got much money? People aren't taking in to account those who aren't that financially stable, they think "well, I'm fine and I've never got a charge, so those that have must have deserved it".

Ok, well we can all do a) though, can't we?