for the people who dont understand

Chrysalis

Please understand this.

Returned items charges are very different to unauthorised overdrafts, many people get high charges when they have not gone over their overdraft limit and also pay these charges without going over. Yet I keep reading people saying its fair because people are borrowing money.

To the press please stop using the term unauthorised overdraft fee as a blanket meaning for the charges, it is wrong on 2 accounts.

1 - many charges are for returned items
2 - technically the overdrafts are approved, lloyds use a better term in a unplanned overdraft.

natweststaffmember

Chrysalis wrote: »

Please understand this.

Returned items charges are very different to unauthorised overdrafts, many people get high charges when they have not gone over their overdraft limit and also pay these charges without going over. Yet I keep reading people saying its fair because people are borrowing money.

To the press please stop using the term unauthorised overdraft fee as a blanket meaning for the charges, it is wrong on 2 accounts.

1 - many charges are for returned items
2 - technically the overdrafts are approved, lloyds use a better term in a unplanned overdraft.

With respect, and even though I agree with you, the term "unauthorised overdraft fees" was the term used by the OFT in the test case which covered all charges ie bounced items, paid referral fees etc,etc,

Alpine_Star

I agree with you both in that all overdrafts - ''unauthorised'' or otherwise, are authorised by the bank and as such 'unauthorised' has been inaccurate since the banks re-presented the reasons for the charges.

The term 'unauthorised' was not used by the OFT in the test case as the banks based their case on all their charges being for the consideration for granting the overdraft or not.

During the test case the OFT adopted the term 'insufficient funds charges', which is much more accurate.

natweststaffmember

Alpine, the term was used in their original press release announcing the OFT test case:
http://www.oft.gov.uk/news/press/2007/106-07

A minor caffeine related error

Chrysalis

natweststaffmember wrote: »

With respect, and even though I agree with you, the term "unauthorised overdraft fees" was the term used by the OFT in the test case which covered all charges ie bounced items, paid referral fees etc,etc,

yep, one of a few things oft got wrong.