Bank Of Scotland's New Overdraft Charges (Nonsense)

opinions4u wrote: »

Several posts on the subject. Apparently there is a £10 buffer, but I've not tested this.

I've edited your quote above.

You've also failed to mention "they will no longer make a fortune out of £35 and £28 fees previously charged for bouncing direct debits and being outside your overdraft limit".

Other posters may also wish to know that it's a £2 a day charge for an authorised overdraft in excess of £2,500 and £5 a day for an unauthorised overdraft (although you can register for a text update to warn you of this happening, giving you the opportunity to fund your account and avoid the £5 fees).

Holders of the Reward current account also get a credit of £5 a month if they fund their account with £1,000 within the previous month. This effectively pays for 5 charge free overdraft days a month.

The fee is £7.50 after the £5 Reward payment is received. If you would use the insurances that come with this account, then for £90 a year it's cracking value. If you don't drive, go on holiday or insure a mobile phone it's probably not good value (unless you spend too much of the month overdrawn by £10-£300).

A vast amount of people never go overdrawn. Ever. Many more than do use overdrafts.

It's a different stream of income for the bank, replacing the ones I mention above, that have been switched off.

If you are living in your overdraft, you have failed to "make ends meet". You need to spend less and/or earn more.

If only it was that simple for alot of people out there.

sscott5581 wrote: »

Several posts on the subject. Apparently there is a £10 buffer, but I've not tested this.

I can confirm there is no buffer, went into overdraft by £1 for one day and was charged £1

Phone them, and challenge them on this. There is a buffer.

An HBOS spokesperson said: "We will be giving customers with arranged overdrafts a £10 buffer zone to help those who slip into the red by a small amount.

The above is quoted from the below article link:-
http://news.bbc.co.uk/1/hi/business/8334744.stm

opinions4u wrote: »

In most cases it is that simple.

I recognise that what I've just typed will outrage and inflame some.

I appreciate that it doesn't usually help those who are already overdrawn by a sgnificant amount unless they have genuine flexibility to amend their spending patterns.

But if you start your earning life sensibly and continually spend less than you earn you will never find yourself going overdrawn. The math is that simple. Why confuse it with emotion?

I certainly agree that it is that simple.

A lot of my friends are convinced I must be using credit cards at the pub or have a massive overdraft, or deal drugs on the side (well they know me better than that but you get the jist), because I am on 1/5th the salary of my other half but have more to spend when I go out on a night out. I also have a higher average bank balance.

And yes, I share the household expenses 50/50. I pay £530 a month into the house account as does my OH and that covers rent / bills / phone / food etc.

I simply don't spend a penny outside the house (except for R&R). I don't touch fast food, I bring a drink with me if I might need it, and never bother with frivolities (again, except R&R).

Result = constant float in the bank, more to spend on a decent night out, and only need to work part time to keep atop of things

It's doable, the first step is getting over the belief that it isn't

EDIT: as for bangwhosnext, making your text big and bold and insulting well respected members is no way to get people on your side, or gain respect.

I for one have never, don't, and will never, work for a bank, but I welcome the Halifax / BoS charging scheme as:

1. It is a good motivator to be more responsible with ones money and use yours not the banks
2. It is a lot cheaper for those that occasionally slip over a little bit and prior to the change would have been charged £38+ for one day of being over. Now it's £1 / £5.

bangwhosnext wrote: »

In a lot of posts you seem to be sticking up for the banks. Would i be correct in saying that you work for the banks? Either way your posts sicken me. People come on here looking for help with the unjust bank charges and you just seem to gloss over the facts with your drivel about how all the banks charges are fair. I dont know how much they are paying you but i hope its worth it. You make me sick you weasel!

Whoaaaa just a minute...
Yes, people do come to MSE looking for help and sometimes the replies are not what they want to hear, nor something which they feel is helpful in their immediate situation (which may understandably be very worrying). But this doesn't make it less truthful or realistic, or lessen the validity of the reply. It may just make someone think more along the lines of ways out of their situation in the future.

It's not a question of 'sticking up for the banks'. It's accepting the reality for what it is and finding the best way to live with it... preferably so that you come out on the right side of it and the 'winner', rather than the banks. In other words, keep hold of more of your own money rather than handing it over to them.

Whatever the rights or wrongs of bank charging, we are where we are unless or until it changes. If we put only part of the energy and emotion we expend on railing against 'the system' into looking instead at how we got into our predicament and the possible alternatives, we take the first steps towards doing something constructive about taking control back into our own hands. It often involves only very small changes to the way we organise our finances or live our lives.

I'm sorry if that also sounds 'preachy' to you, but in almost any situation I'd personally rather be told a blunt home truth and face up to the real issues than have it wrapped up in cotton wool and go blithely along in my own sweet way. I might detest the 'advice' at the time, but the sense of it generally filters through on reflection.

You should read this post written on Christmas morning from the same person you are now castigating -- I mean really read it in the thoughtful spirit in which it was written -- and you may form a different opinion and look on things a little differently.
http://forums.moneysavingexpert.com/showpost.html?p=28146697&postcount=1

Or then again maybe you won't... that's your right of course.