End of free banking..

mintedmatty

I wonder what would happen if Overdrafts were abolished? there was time not long ago when bar mortgages, people only spent what money they had?

JimmyTheWig

sprinter11 wrote: »

i am one of those people that is forced to use the overdraft for reasons i will not mention on hear.

Given that by far the best way to address the problem is to stop using your overdraft, it is difficult to help without knowing why you are forced to use it.

There are probably better ways, if we knew the issues, but it would probably work out cheaper to take out a personal loan for the maximum amount that you go overdrawn and pay that into your current account. Then you would never need to go overdrawn.

exel1966

davidgmmafan wrote: »

"Especially as they have already devastated many lives with thier extortionate charge which.

The banks haven't devestated anyones lives. Account holders who live way beyond their means have managed to do that all by themselves. Banks don't put people into debt, a lack and disregard of financial management to keep up with the Jonses does that. It's called the pressure of life, some manage it well, some don't!

karatedragon

sprinter11 wrote: »

I suppose we all knew that eventually sooner rather than later we will see an end to free banking,well that day for me has finally arrived,or it will be in December.

I have a basic current account with the Lloyds TSB called the Classic account,and what they are going to do is introduce a £5 usage fee for using a planned or unplanned overdraft, this is on top of the interest which i'll have to pay once for each monthly billing period,now unfortunatly for me i am one of those people that is forced to use the overdraft for reasons i will not mention on hear.

Also for customers that go over drawn without permission will in fact pay less interest,so they are in effect robbing Peter to pay Paul.

??What do you all think i should do to avoid paying the £5 charge,as i'm not in the habit of making rich bankers even more wealtier at my expence.

Advice needed please.:cool:

No one is forced to go overdrawn. being overdrawn is your own choice If you are overdrawn you are living beyond your means.

Go by the saying "if you can't afford it - don't have it".

I have prepayment gas and electric meters and if I can't afford to "feed" them then I am simply plunged into darkness. No big deal. Kind of relaxing. But then I am not overspent.

tiff

Obviously people commenting here have no empathy with the current financial situation of lots of people in this country.

If you are struggling financially so that you have to use your overdraft each month then I would recommend you really work on setting yourself a written budget and practise working to it while reducing the overdraft each month. I have used www.budgetbrain.com which is free (set up by MSE). Banks can call in an overdraft at any time and a couple of years ago we were in our overdraft every month up to £2800. Once the credit crunch kicked in we worked on reducing the overdraft every month (I got a second part time job) scared that the bank would remove the facility.

If you dont earn enough then you need to find extra income, sell on Ebay, another job, promotion etc. Sell a car if you have to, but work out a way to get rid of that overdraft. Another option would be to get a 0% ccard for purchases and use this for spending so you effectively transfer the overdraft to an interest free cc.

Lokolo

tiff wrote: »

Obviously people commenting here have no empathy with the current financial situation of lots of people in this country.

If you are struggling financially so that you have to use your overdraft each month then I would recommend you really work on setting yourself a written budget and practise working to it while reducing the overdraft each month. I have used www.budgetbrain.com which is free (set up by MSE). Banks can call in an overdraft at any time and a couple of years ago we were in our overdraft every month up to £2800. Once the credit crunch kicked in we worked on reducing the overdraft every month (I got a second part time job) scared that the bank would remove the facility.

If you dont earn enough then you need to find extra income, sell on Ebay, another job, promotion etc. Sell a car if you have to, but work out a way to get rid of that overdraft. Another option would be to get a 0% ccard for purchases and use this for spending so you effectively transfer the overdraft to an interest free cc.

Not when they come here to just complain about charges no. Has any of them asked for any help to get them out of the situation? No. Therefore, no empathy

tiff

Well maybe its down to us to show them the way?

davidgmmafan

"The banks haven't devestated anyones lives. Account holders who live way beyond their means have managed to do that all by themselves. Banks don't put people into debt, a lack and disregard of financial management to keep up with the Jonses does that"

Utter rubbish. At the end of the day you believe what you want to believe. Your comment sounds like the way the banks now respond to ANY criticism of the level of thier charges. They say it is the way you have operated the account which led to the charges. Of course this is true in the first instance, but there are literally hundreds, maybe even thousands, of examples where a minor miscalculation transformed into HUNDREDS of pounds.

I'd like to believe that if someone incurred a bank charge and geninely couldn't pay it the bank would work with them. Unfortunately the reality is that they WILL NOT DO SO. They will continue to apply the charges and ruin that person. I know it can be difficult for some people to understand that some people cannot cover a £30 charge ,but if that's half your weekly income it would take some doing.

I have NEVER experience this but I can observe that not everyone in the world is identical. Do you even know how much JSA is?

davidgmmafan

So to sum up yes the individual is at fault for a charge, if the bank charging regime means this starts a snowball leading to hundreds of pounds worth of debt that will never be paid then they are to blame for that.

If as the banks maintain they are service charges they should be invoiced for seperately. They are not because A) They aren't really service charges They know 99% of people won't change banks because they're mostly all the same, so they have people over a barrel.

davidgmmafan

Lokolo wrote: »

Not when they come here to just complain about charges no. Has any of them asked for any help to get them out of the situation? No. Therefore, no empathy

Wow so you've read every post EVER on this forum relating to reclaiming? That's some amazing dedication there.