MSE News: Minister warns banks of overdraft charges legislation

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Banks have been told by a senior minister they face legislation on overdraft charges if they fail to deliver fairer fees ..."

Read the full story:
Minister warns banks of overdraft charges legislation

MrLeeLee

I love (actually, hate) the fact that even after all these years of EXCESSIVE and quite frankly RIDICULOUS overdraft 'fines' people in power still think the banks will sort it out themselves like the jolly old chaps they are. They have shown they won't. Stop talking about it and take action!!! Now, not in 2012 when the OFT will issue another 'please please stop causing misery to the less fortunate and stop charging people such a lot of money when they find themselves in hard times' statement which will then fall on deaf ears again.

Unless of course, there is nothing anyone in power can do about it...

blind-as-a-bat_2

HSBC move

Within two hours of the OFT's announcement, HSBC revealed plans to launch an account that won't allow you to exceed your overdraft meaning you cannot get a charge.

However, the account, called the HSBC Bank Account Pay Monthly, comes with a catch - a £15 a month fee. The bank accepts the product, which launches on 26 April, is not suitable for the vast majority of its customers.

Even if you slip over because a retailer has not asked for authorisation, there are no fees, though you'll be asked to pay the money back.

Says it all:rotfl::rotfl::rotfl:

If we can not charge you for going overdrawn, we will charge you for not being able too (because we [STRIKE]dont want to[/STRIKE] can not make a system to guarentee you can,t)

gjs1701

Nationwide do not let you exceed your limit. They still charge you £30 for bouncing your payment. So they fit the new requirement and still charge you silly money. :mad:

chipbeck

Got another phonecall from a nice Indian man yesterday regarding my Lloyds account. He's with collections but is based in India. He wanted to know why I was £325 over my overdraft limit. I told him to look at my details and he may be able to see that on the 1st March I had charges of £329 for a bounced dd and two declined SO's.
He's told me to write to Brighton detailing my IE which is a major result as I was looking for something useless to do with my time. I had to laugh because he was giving me the impression that it was ridiculous but he new that nothing would be done about it.

davidgmmafan

Why don't they just pass it now and make it apply to past charges? It is easily as ridiculous as MP's expenses and I think retrospective requirements there are perfectly reasonable. I'm sure most people would have not problem accepting an income and expenditure form from thier bank if they couldn't afford to pay in full immediately.

Snakeeyes21

or people could just take responsibility for their finance...........................

Percy1983

Seconded, the best way of not getting over the top charges on your bank account is to not go overdrawn.

davidgmmafan

I am truly in awe of your intellect my mistake there clearly is not problem at all.

I really can't be bothered to go through the whole don't spend other people's money argument, because it doesn't work. Enjoy the thread.

glider3560

If banks can't charge overdraft fees, they'll find another way of making money. That is why the bank exists - not to provide joe public with banking services, but to make a profit. In the end, we'll all end up paying for services which we may currently receive for free.

Low income, being made redundant, etc is not a good enough reason for going into an unauthorised overdraft. My parents were brought up in families earning minimum wage back in the 60s. They couldn't just steal the bank's money when they felt like it, but they got by. Perhaps by not having a TV or phone, or by renting such goods as opposed to buying them. Nowadays having a TV or mobile phone or Sky subscription seems to have become a right, rather than a privilege for those who could afford them.

Before someone brings up the "we've bailed out the banks so we want something back for free" argument, this won't wash with me because in case anyone hasn't noticed, we bought shares in the bank - we didn't just hand over huge wads of cash. When the banks make a profit, the government will receive their share of this. The government will also be able to sell the shares, which should recover some of the money spent.

Good financial responsibility is all most people need to avoid charges. Question yourself before you stick your card in the PIN terminal: Do I really need this item? Can I get it cheaper? Do I have enough money in my account? Do I have any bills due in the next few days?

Matt16v

Probably the best post i've read on this site to date! I'm on the 'charges are extortionate and unfair' side of the fence, but there's not much to argue with there!