£25 bank charge for 33p over limit

Not sure if it's been posted, but all you guys saying these charges are fair.

You do know that the banks have been taken to court over the fairness of these charges right? And it's made its way as far as it goes (House of lords) and so far i think 3 have agreed they are unfair and they are waiting on the last 5 to decide (Not sure on exact numbers)

If the banks loose the case then it will be decided if the bank charges are unfair and how much people will be refunded (Upto 6 years of charges)

So say goodbye to free banking people, because banks are about to pay out the ass from this.

Oh and all the info regarding the case is over at forums.moneysavingexpert.com
 
It's not a question of fair or not, it's the actual cost of the charges being excessive which is under scrutiny.

My girlfriend has been waiting for nearly 2 years on the decision of this case for her charges from Lloyds.
 
Dangerous said:
It is if you go £2500 into your OD but if you are 300quid its very bad :confused:
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You cannot go 2,500 over your overdraft simply because they will deny the debit.

I spoke to a Lloyds rep in a similar event and he stated that it's a standard unauthorised OD charge etc etc and then I asked him how is it fair that I get charged the same amount whether I go OD for less than a pound or 1,000. His answer was that the bank would not let me go OD 1,000, they would have denied the transaction.
 
I agree you shouldnt go over your overdraft, but £25 for 33p is just outrageous.
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well the bank sets a cost/price for people going over there limit...

are you saying it would be fairer to charge more for going £50 over than for 33p EVEN if it took the bank just as much effort to resolve this situation?

personally i know where my accounts are up to. i wouldnt go 33p over my limit and THEN complain.. id just ensure i had the right amount of money or not spend if i could not afford to cover bank costs.
 
I don't understand why banks don't simply leverage a higher interest rate on the unauthorised part. Taking significant amounts off people who can't afford it is absurd.

Those saying "manage your money" - obviously you haven't read the OP's explanations, or live in a perfect world where your sums always match up and you always have plenty of cash.

I've gone overdrawn once, by 5p! For literally a few minutes so I don't think it counted.

I also don't understand Halifax's new overdraft charges, which are absolutely mental and completely unfair to 90% of OD people.
 
kgi said:
You cannot go 2,500 over your overdraft simply because they will deny the debit.

I spoke to a Lloyds rep in a similar event and he stated that it's a standard unauthorised OD charge etc etc and then I asked him how is it fair that I get charged the same amount whether I go OD for less than a pound or 1,000. His answer was that the bank would not let me go OD 1,000, they would have denied the transaction.
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And there lies the issue. They stop high transactions, but not small ones. They're setting their own profit up for themselves from you.
 
How the hell has "OH NOES OVERDRAFT FEES" turned into a 6 page epic?

I'm not reading all this rubbish.

You were wrong to go into your overdraft without authorisation, but equally I agree that £25 is a bit much considering the actual cost to the bank of 33p over a few days.
 
kylew, what a lot of strange things have happened to you, and what a coincidence that on the day of this thread being created you just happened to have your electoral role form next to you ready to finally sort out your credit rating!

I tend to agree with Jez to be honest, the weak link is clear for everyone to see - sorry. If you spent as much time managing your bank account per month as you have contributing to this thread then I'm sure you'd be fine and all these nasty things wouldn't keep happening.
 
Jon12345 said:
I am disgusted with first direct. I went 33p over my overdraft limit for one day and I am getting a £25 bank charge.

These kind of fees have surely go to stop as they are exploiting customers to a ridiculous extent. I am so angry.n
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As a matter of interest, what do you think would / should be an appropriate response?

Should the bank have a series of thresholds and responses and if so, what would you suggest?

Perhaps banks should just ignore anyone who exceeds their overdraft limit :confused:
 
Wicksta said:
kylew, what a lot of strange things have happened to you, and what a coincidence that on the day of this thread being created you just happened to have your electoral role form next to you ready to finally sort out your credit rating!

I tend to agree with Jez to be honest, the weak link is clear for everyone to see - sorry. If you spent as much time managing your bank account per month as you have contributing to this thread then I'm sure you'd be fine and all these nasty things wouldn't keep happening.
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What's your point? I've been meaning to give it in, big deal, it's hardly a coincidence considering I brought it up in the first place.

Finding out I wasn't on the electoral role prompted me to print off a form and fill it in. :rolleyes:
 
Jez said:
No, but is this not a wholly pointless service? I have my overdraft set at a level which provides sufficient buffer anyway.
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I guess if you live in your overdraft, so long as you dont use the buffer then it is potentially a good idea but Im sure some people will just use it as part of their normal overdraft. Personally I dont use the my overdraft facility at all but keep a cash buffer instead.
 
kgi said:
You cannot go 2,500 over your overdraft simply because they will deny the debit.

I spoke to a Lloyds rep in a similar event and he stated that it's a standard unauthorised OD charge etc etc and then I asked him how is it fair that I get charged the same amount whether I go OD for less than a pound or 1,000. His answer was that the bank would not let me go OD 1,000, they would have denied the transaction.
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dirtydog said:
He didn't say OVER it it, he said INTO it.
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As DD said. I have a OD bigger than £2500.

Little chance of me going that far into it but still! I'd pay the same if I was -£2500 into my OD as £0.01p
 
Bear said:
I guess if you live in your overdraft, so long as you dont use the buffer then it is potentially a good idea but Im sure some people will just use it as part of their normal overdraft. Personally I dont use the my overdraft facility at all but keep a cash buffer instead.
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I think the other problem is that people use an overdraft as if it was cash they actually had rather than a buffer for emergencies. It's amazing how many people do this and then moan about being charged for being '50p' overdrawn when in fact they are actually £1000.50p overdrawn or something.
 
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