MSE News: RBS and Natwest to rejig bank charges

Former_MSE_Guy

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

Read the full story:
RBS and Natwest to rejig bank charges

premierfella

As someone who stays within an arranged overdraft limit, I am pleased to see that RBS/NatWest have not followed the Halifax arranged overdraft usage fee model and plan to charge only for unarranged overdrafts.

I confidently predict that when this comes in we will see complaints against RBS/NatWest along the lines of "I didn't get my free text alert telling me I went over my overdraft limit and now I have been charged £x".

knightfox

The Nationwide are doing the same. Lloyds have been changing theirs as well.

'unarranged overdrafts' this wont happen as the computer systems will make sure you dont spend what you dont have.

glider3560

knightfox wrote: »

'unarranged overdrafts' this wont happen as the computer systems will make sure you dont spend what you dont have.

Really? Not all transactions are processed online, so it is still possible to go over your limit.

BLT_2

knightfox wrote: »

The Nationwide are doing the same. Lloyds have been changing theirs as well.

'unarranged overdrafts' this wont happen as the computer systems will make sure you dont spend what you dont have.

Of course it will - if you draw out all of your funds the day before your direct debits are due then you will go into an unarranged overdraft.

davidgmmafan

Actually this seems fairly reasonable, its wrong to have virtually no difference between arranged and unarranged overdrafts as Halifax does. However it is interesting that, once again, the charging structures seem to be starting to all look very similer.

I'm still waiting for someone to explain to me how the original Natwest charges of over £30 for a returned item were not prevented in anyway by competition. I still cannot believe the banks got away with this, the new charges show it was an absolute racket before. Yet they've off the hook much like greedy lying MP's.

We didn't do anything wrong but we've changed the system anyway. Yeah right.

opinions4u

its wrong to have virtually no difference between arranged and unarranged overdrafts as Halifax does

When I was taught about money, I learned that £1 is a lot less than £5.

knightfox

BLT wrote: »

Of course it will - if you draw out all of your funds the day before your direct debits are due then you will go into an unarranged overdraft.

Would they still pay the money out if there are no funds in the accoount. From what I have read with Nationwide they appear to be getting tighter on this behaviour.

Milarky

It's notable that the concept of overdraft 'interest' is being dropped (as per Halifax £1 or £2) to be replaced with a scarcely unflattering daily charge (£6) Of course this applies only to 'unauthorised' or excess overdrafts - interest is still being taking for use of any 'authorised' borrowing.

But let's call a spade a spade here. If they can calculate a 'fair' rate of interest to cover the authorised borrowing then why does the additional borrowing of an unauthorised O/D amount justify a fixed charge? That free email alert doesn't cost 0.6p!

As usual this is just licensed profiteering (it is profitable once your customer moves into unauthorised O/D territory) which they want you to fall into - not something that justifies the term 'responsible lending' - and, like a slowing boiling frog, they won't now turn up the heat (i.e. 'reduced' charges) quickly enough for you to get into serious financial difficulties - just to take a 'haircut'

chambta

Daft timing by RBS. Why not allow the divestment to happen first?

This means divested customers will likely have two complete charging structure changes within a year.

BLT_2

knightfox wrote: »

Would they still pay the money out if there are no funds in the accoount. From what I have read with Nationwide they appear to be getting tighter on this behaviour.

I'm pretty sure they would if they thought they were going to get 6 quid a day out of it :-) I'm not sure how the system works but as it is appears to be fully automated I assume that the payment would be made and then reviewed? If there wasn't such a mechanism no one would ever go into an unauthorised overdraft.