Banks cancelling overdrafts

Lokolo

sluggy1967 wrote: »

Oh of course, silly consumers, tut tut, smack our hands! Must remember to tell the school the reason why our kids shoes are falling apart...we shouldnt be so damn frivilous with our spending! What do you think people are using their overdrafts for? Holidays in Orlando? I repeat - fuel bills have gone SKY HIGH, food bills have ROCKETED. Kids GROW OUT OF CLOTHES etc - INCOME FOR MANY PEOPLE HAS REMAINED THE SAME OR FALLEN (redundancy, shorter working week etc) I'm sure, working in a bank, you come across people who just dont budget or look after their money wisely, but DO NOT tar everyone with the same patronising brush.

Oh and whilst I'm on this rant, when this recession is over & it's all been forgotten about, please tell your fellow workers that when I pop in to pay a bill over the counter STOP TRYING TO FLOG ME PRODUCTS I DIDNT ASK FOR OR WANT - come on MSE readers, who recognises this little conversation? "Whilst you're here, can I interest you in our credit card?" "No thank you, I already have one" "May I ask who it's with and what the APR is, I'm sure ours will be better, it's 0% interest..." blah blah blah

When things were good, could you not have cut backed and saved? You could be using those savings right now to help you in tough times.

sluggy1967

ahai1 wrote: »

What you are trying to say is that the customer is not at fault? Call me old fashioned but I thought it always took 2 to tango. Banks are not here for people to get free money but they are a place for lending, saving and safe keeping of money.

I am sorry but I think that some people here have got the idea that they have a god given right to an overdraft. The banks may have lent silly money but the person taking it is as much at fault as the banks. Unless you think the customer can do anything they like.

I really don't think people are saying that at all, I think it's more a case of overdrafts are a necessary evil for some to survive in difficult times, and the issue at the moment on this thread is that banks have given with one hand (maybe too recklessly because it seems like "Good Times") and are now very very quickly snatching back with another.

If somebody is using an overdraft facility on a regualar basis, suddenly taking it away from them is not going to help the customer, who will incurr immediate charges. (Maybe that's why the banks are doing it - knowing they are in a "win win" situation charging). Surely nobody thinks it's right that the overdraft will be withdrawn with 1 days notice causing hardship for people? Imagine if mortgage companies knocked on people's doors tomorrow & said they wanted their money back? There will be some people who have gone into work this morning to find they've lost their job AND might not even get paid that month for the work they've done - to have the bank remove an overdraft facility is a kick in the teeth.

Justamum

ahai1 wrote: »

What you are trying to say is that the customer is not at fault? Call me old fashioned but I thought it always took 2 to tango. Banks are not here for people to get free money but they are a place for lending, saving and safe keeping of money.

I am sorry but I think that some people here have got the idea that they have a god given right to an overdraft. The banks may have lent silly money but the person taking it is as much at fault as the banks. Unless you think the customer can do anything they like.

The banks have been selling loans to gullible and willing people. Salesmen tend not to tell you the pitfalls and negatives about their product. Credit cards are glossily advertised with wonderfully low interest rates and huge amounts you can borrow. Not everyone is savvy enough to understand what they are getting themselves into.

Personally, we don't have loans and credit cards (or debt cards as I prefer to call them). The only money we owe is our overdraft which we NEED to use. My husband has been bringing home just over £1500 a month, but our outgoings on rent and bills (including the overdraft charge, so it's not 'free' money) is just under £1250. If it wasn't for the child benefit money we wouldn't eat. I feel guilty about it, but my mum tends to buy the children clothes out of her pension. I am trying to reduce our overdraft but it's an extremely slow process. Comments such as "everyone should have some savings" don't help - there are thousands and thousands of people who just don't have the finances to be able to save.

If the bank took away our overdraft suddenly and demanded instant payment, then piled charges on top because of "unauthorised" spending, then we would very quickly end up owing hundreds, and probably being evicted for non-payment of rent. It's that bad for lots of us.

sluggy1967

Lokolo wrote: »

When things were good, could you not have cut backed and saved? You could be using those savings right now to help you in tough times.

I beg your pardon? You know nothing of my situation. My husband was a teacher who had to pack it in due to ill health when our son was 18mths old as he developed cerebella ataxia (Brain degeneration) I am his carer. All our savings vanished within the 1st couple of years and we survive on his meagre teachers pension, Disability living allowance and Incapacity. Believe me, I wish we'd been friviolous with our savings when we were told of his condition, we certainly felt like it, at least then we really could blame ourselves for the financial position we are in, just like you & others seem to be judging.

Lokolo

Justamum wrote: »

The banks have been selling loans to gullible and willing people. Salesmen tend not to tell you the pitfalls and negatives about their product. Credit cards are glossily advertised with wonderfully low interest rates and huge amounts you can borrow. Not everyone is savvy enough to understand what they are getting themselves into.

Personally, we don't have loans and credit cards (or debt cards as I prefer to call them). The only money we owe is our overdraft which we NEED to use. My husband has been bringing home just over £1500 a month, but our outgoings on rent and bills (including the overdraft charge, so it's not 'free' money) is just under £1250. If it wasn't for the child benefit money we wouldn't eat. I feel guilty about it, but my mum tends to buy the children clothes out of her pension. I am trying to reduce our overdraft but it's an extremely slow process. Comments such as "everyone should have some savings" don't help - there are thousands and thousands of people who just don't have the finances to be able to save.

If the bank took away our overdraft suddenly and demanded instant payment, then piled charges on top because of "unauthorised" spending, then we would very quickly end up owing hundreds, and probably being evicted for non-payment of rent. It's that bad for lots of us.

Everyone can save. They just choose to ignore the fact they could be more frugal. There are a number of people on the DFW board who live off £4,000 a year. That means to not save something, you would have to be earning under minimum wage.

sluggy1967 wrote: »

I beg your pardon? You know nothing of my situation. My husband was a teacher who had to pack it in due to ill health when our son was 18mths old as he developed cerebella ataxia (Brain degeneration) I am his carer. All our savings vanished within the 1st couple of years and we survive on his meagre teachers pension, Disability living allowance and Incapacity. Believe me, I wish we'd been friviolous with our savings when we were told of his condition, we certainly felt like it, at least then we really could blame ourselves for the financial position we are in, just like you & others seem to be judging.

I am not judging but I am fed up with people on this board whining and complaining about debts and such when its in the T&Cs! Simple common sense means READ THEM. The fact is, people are living in their overdrafts and wondering why banks are taking them away! Come on its just simple!

---

All the people who are living in their overdrafts and not coming out of them, whats wrong with a loan? Pay off the overdraft, budget, pay back the loan, and after a year or 2 you are free, being able to budget and you shouldn't have problems again.

Justamum

Lokolo wrote: »

When things were good, could you not have cut backed and saved? You could be using those savings right now to help you in tough times.

You have obviously been too influenced by the media about the so-called 'good times'. Not everybody experienced them. Cutting back is a way of life for many, and now it's a case of cutting back even more (if that's possible).

Lokolo

Justamum wrote: »

You have obviously been too influenced by the media about the so-called 'good times'. Not everybody experienced them. Cutting back is a way of life for many, and now it's a case of cutting back even more (if that's possible).

So you're saying even on minimum wage of £12k. living off £4k (not inc rent) people can't save?

Say that to those on the DFW board. Everyone can cut back, just need willpower, frugal spending and common sense and anyone can do it.

Currently as a student I don't have a lot of money to spend, after rent I spend around £300-£400 a month,, that includes going out and partying, petrol, car insurance and maintenance, food, bills (interenet, phone, gas and elec)

Justamum

Lokolo wrote: »

Everyone can save. They just choose to ignore the fact they could be more frugal. There are a number of people on the DFW board who live off £4,000 a year. That means to not save something, you would have to be earning under minimum wage.

Some people live on £4,000 a year? Is that before or after all essential outgoings? Or do they own their homes outright, or pay no, or little, rent (council house for instance). Our rent is currently £10,200 a year. In order to live on that little we would have to live in a cardboard box. Everybody's circumstances are totally different, so you can't say that because some people manage on so little that everybody can.

And no, not everybody can save. All our money is tied up in essential outgoings. Sorry to pop your balloon.

pedro123456

Nice one cocolo........or should I be kind and say Lokolo....no the first one sounds better.

I see what you mean about Cocks helpfulness now Nomad........he really helpful.

dink..............

Kavanne

Justamum, pop on over to the DFW to see how they do it

I found the thread for you: http://forums.moneysavingexpert.com/showthread.html?t=1593987