New overdraft fees

shifty_uk · 29 Oct 2009 at 23:11

Just got the letter in today regarding the Bank of Scotland's new overdraft fees.

I hold an "ultimate reward current account", despite not using any of its additional benefits. However, being a student I'm well into my overdraft and I'm worried about having to fork out £1 everyday even though I'm paid on a monthly basis.

Does anyone know anymore about this? Will it be the same across all bank accounts now or could I simply transfer my overdraft debt?

I'm really worried now, I'm a fair bit over the £300 threshold and can't afford to be forking out £1 every day.

edit: I do have a student account but because I didn't pay my loan directly into it(stupidly) last year, they didn't give me the £3000 interest free overdraft. Only £500 interest free.

Morba · 29 Oct 2009 at 23:13

over the threshold? you mean over your limit?

shifty_uk · 29 Oct 2009 at 23:16

No, my agreed limit has always been £1,000. They charge £1 per day if you go over £300, though.

Dogoid · 29 Oct 2009 at 23:25

im with Halifax, and i am led to believe from the letter they sent me that no matter what amount you go overdrawn , its still a quid a day. if you get a unauthorized overdraft its a fiver a day.

maybe its different for students. i have a current account

HAz · 29 Oct 2009 at 23:28

shifty_uk said:
No, my agreed limit has always been £1,000. They charge £1 per day if you go over £300, though.

Yes i have this too, its been like it for ages thou. Is costing me about £20 a month so not cool. Bt if i go over it ie a direct debit comes out and i dont have enough over draft i get charged only £5 per days its over.

Rotty · 29 Oct 2009 at 23:30

would be harsh to apply to folks who are already over

shifty_uk · 29 Oct 2009 at 23:30

I'm currently looking at other student accounts with other banks, if I opened one could I essentially transfer my overdraft?

meghatronic · 29 Oct 2009 at 23:38

shifty_uk said:
No, my agreed limit has always been £1,000. They charge £1 per day if you go over £300, though.

Barclay's student accounts have an overdraft (min £200, max £2000) and a reserve that varies per person. You only get charge for going into your reserve....

So you have an interest-free overdraft limit of £300.....

Stretch · 29 Oct 2009 at 23:43

Wtf, how can this be considered a fair fee for an authorised loan? If you had an average £1,000 (which is quite a lot) overdraft over a year it would interest rate of 36%, and that’s not including compound interest. I can’t see many people staying with them with fees like that. It's time the government steped in with laws to stop the banks acting like this.

SilverTongue · 30 Oct 2009 at 06:24

Authorised overdraft up to £2500 - £1 per day
Authorised overdraft over £2500 - £2 per day
Unauthorised overdraft - £5 per day
No interest will be charged

it works out that if you have an unauthorised overdraft 2 weeks before pay they will charge a whopping £70, double the original charge so if you only go a penny into unathourised that'll be a 7000% profit for them

singist · 30 Oct 2009 at 07:11

vote with your feet instead of dropping your nickers and bending over.

Jonny ///M · 30 Oct 2009 at 14:55

I'm also with BOS and got the same letter. I have a normal current account and currently sit -£500 or so(I'm owed £250 by others) but I'm jus gonna have to move the money I've saved in my other account to save the £1 a day charge.

MrMoonX · 30 Oct 2009 at 15:08

just move banks