Halifax £1 per day charge for using authorised overdraft? Will others follow?

jambosans

rb10 wrote: »

In short, you don't.

APR is an interest rate, so it varies depending on how much you are overdrawn by. This is a fixed fee, so it remains the same regardless of how much you are overdrawn (up to £2500).

(Aside from being spot on), that's a rubbish answer rb10, the sensationalists much prefer "around 1 billion % APR".

izools

Just thought I'd say I think it is an excellent incentive and I would welcome my bank introducing this as it would stop me being tempted to use my new overdraft.

Good idea.

mrg9999

jambosans wrote: »

(Aside from being spot on), that's a rubbish answer rb10, the sensationalists much prefer "around 1 billion % APR".

I should have asked compared to say a 1000 pound overdraft at x% over y days.

sabretoothtigger

The most you can overdrawn for the £1 is 2499. If you borrowed that for a year, it'd be the same as 14.6% APR




If you go overdrawn by 1 pence, they will charge £1 per day or £365 per annum which would be about 200% APR I think?


Ive actually been charged more then that elsewhere, I exceeded my overdraft by £1 at the start of the month (it was an overdraft interest charge) and somehow I had thought it was an interest free overdraft so I did not check my balance until end of the month when they had managed to charge me £200 in fees and interest on my unauthorised overdraft of £1

Because they were making daily charges immediately and interest on those fees it must have compounded to be several thousand percent.
By comparsion this account aint so bad and I think they would give advance notice of the charge for the daily fee by a month?

jambosans

sabretoothtigger wrote: »

If you go overdrawn by 1 pence, they will charge £1 per day or £365 per annum which would be about 200% APR I think?

There is a £10 buffer on accounts with this charging structure (arranged and unarranged overdrafts). So you should only pay £1 per day (arranged) or £5 per day (unarranged) for overdrawn balances >£10. This isn't written into the terms and conditions, however if you read the below post, I've quoted and linked to an article where an HBOS spokesperson confirms the buffer:-
http://forums.moneysavingexpert.com/showpost.html?p=29407549&postcount=7

sabretoothtigger wrote: »

By comparsion this account aint so bad and I think they would give advance notice of the charge for the daily fee by a month?

That's right. Charges are detailed on your statement (e.g. January) and debit at the end of the following calendar month (e.g. February).

stacywoodhouse

Complain to [EMAIL="eric.daniels@lloydstsb.co.uk"]eric.daniels@lloydstsb.co.uk[/EMAIL] he is the CEO. Thats what I am doing right now

ajharris

PaulJM wrote: »

Thanks for the clever book recommendations, bud.
It must be great to know so much about it.
Can I suggest that you then learn that;
1) everyone is allowed to express their opinion without your abuse (look at the post from oppinions4u - who admittedly had a little dig at me - I can take that - but they suggested positive ways around the situation)
2) Basically suggesting "stop moaning and get on with it" is a very bad suggestion for society as a whole - historically, a lot of bad things have happened by letting organisations get away with things.

Mr Paul JM, You are a very harsh person but you talk a lot of sense. I cannot even begin to argue with your opinions. So many people on here think that their problems are everyone's fault apart from theirs. Banks are businesses not charities. People need to realise that they cannot earn a penny and spend a pound.

Debt: An ingenious substitutuion for the slave masters whip and chain:exclamati