Remove unplanned overdraft facility?

antonia1

Hi, with all the high profile cases going on I am concerned about incurring charges for going into an unauthorised overdraft. Is it possible for me to insist that my bank removes my unplanned overdraft facility, thus automatically rejecting any direct debits that would take me over my limit, and ensuring that the maximum I get charged is the "unpaid direct debit" fee rather than being charged for going over my limit?

My concern is that a few years ago I was charged by Lloyds TSB £35 for going into £3 an unplanned overdraft, then they charged me £6 per day that it wasn't cleared (upto £75 in any month). I would far rather my payment had been rejected and charged £25 for unpaid direct debit.

Lokolo

Basic accounts offer these.

http://www.lloydstsb.com/current_accounts/cash_account.asp

However it does have extra limitations, such as not being able to withdraw from non LTSB ATMs

exel1966

antonia1 wrote: »

Hi, with all the high profile cases going on I am concerned about incurring charges for going into an unauthorised overdraft. Is it possible for me to insist that my bank removes my unplanned overdraft facility, thus automatically rejecting any direct debits that would take me over my limit, and ensuring that the maximum I get charged is the "unpaid direct debit" fee rather than being charged for going over my limit?

My concern is that a few years ago I was charged by Lloyds TSB £35 for going into £3 an unplanned overdraft, then they charged me £6 per day that it wasn't cleared (upto £75 in any month). I would far rather my payment had been rejected and charged £25 for unpaid direct debit.

With all banks it's up to you as an account holder to manage and maintain their account to stay within any limitations set.
It's not for the bank to pick and chose what they will or won't pay. Would you really want to hand that power over ? If you have a DD set, then the company claiming that payment is fully entitled to do so regardless of whether you have enough funds or not. It's your responsibility to ensure you do or cancel the DD.

bendix

exel1966 wrote: »

With all banks it's up to you as an account holder to manage and maintain their account to stay within any limitations set.
It's not for the bank to pick and chose what they will or won't pay. Would you really want to hand that power over ? If you have a DD set, then the company claiming that payment is fully entitled to do so regardless of whether you have enough funds or not. It's your responsibility to ensure you do or cancel the DD.

Responsibility?

That's a swear word around these parts, Mr. MSErs understand 'rights', but that other one? No way.

ffacoffipawb

bendix wrote: »

Responsibility?

That's a swear word around these parts, Mr. MSErs understand 'rights', but that other one? No way.

It's been a swear word since May 1997 when the chav culture wheels were set in motion.

Inactive

ffacoffipawb wrote: »

It's been a swear word since May 1997 when the chav culture wheels were set in motion.

Long before that I'm afraid, it started with the Thatcher, dog eat dog culture.

jambosans

antonia1 wrote: »

Hi, with all the high profile cases going on I am concerned about incurring charges for going into an unauthorised overdraft. Is it possible for me to insist that my bank removes my unplanned overdraft facility, thus automatically rejecting any direct debits that would take me over my limit, and ensuring that the maximum I get charged is the "unpaid direct debit" fee rather than being charged for going over my limit?

Yes, but you can't "insist", but Lloyds TSB will do it for a price. If you pay £10 per month, the Lloyds TSB Classic Account with Control will manage your financial ineptitude by bouncing as many payments as they can - you will still pay up to three £10 Unpaid Item Fees per day. Alternatively, why not try and manage your finances, and put that £10 per month in a savings account?

antonia1

My point is more theoretical. If the banks claim that the unplanned overdraft is a facility for which I have agreed to pay £35 each time I use it, surely I should have the option of removing such a service, in a similar way to my ability to stop my credit card company sending me "credit card cheques". Or at least I wanted to know if bank accounts do exist with this option. The power to only pay what I have money in my account to pay seems like a much better option to me than being charged extortionate amounts.

Yes, but you can't "insist", but Lloyds TSB will do it for a price. If you pay £10 per month, the Lloyds TSB Classic Account With Control will manage your financial ineptitude by bouncing as many payments as they can - you will still pay up to three £10 Unpaid Item Fees per day. Alternatively, why not try and manage your finances, and put that £10 per month in a savings account?

And FYI I haven't used an unplanned overdraft facility since I left school 8 years ago! It may also be worth bearing in mind that, currently, those with "financial ineptitude" are funding free banking for everybody else.

justjohn

antonia1 wrote: »

And FYI I haven't used an unplanned overdraft facility since I left school 8 years ago! It may also be worth bearing in mind that, currently, those with "financial ineptitude" are funding free banking for everybody else.

No they are not thats carp

sequence

I can understand the OP's point. The banks said that the unplanned overdraft is a service - therefore you should be able to cancel that service - like Barclays "reserve" can be canceled.

Though DD are slightly different legality - but if you have no DD's then you should be able to have no unplanned overdraft.

antonia1

Quote:
Originally Posted by antonia1

And FYI I haven't used an unplanned overdraft facility since I left school 8 years ago! It may also be worth bearing in mind that, currently, those with "financial ineptitude" are funding free banking for everybody else.


No they are not thats carp

The whole point of the legal case was that the charges do not accurately reflect the true cost to the bank of a customer using an unplanned overdraft facility. And various people in the banking industry have suggested that if the banks stop making money out of the unplanned overdraft charges they will start charging for ATMs and ordinary bank accounts. To me, that seems to suggest that the people paying bank charges are (at least partially) funding free accounts and ATM withdrawals for everyone.