Santander changes to overdraft fees !!

Cmdr_Bond

I can't get that page to load.

[edit] was refering to the OP

jambosans wrote: »

...

The link supplied by the OP didn't open in my browser, here's another to a dedicated page on Santander's website:-
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237880423035&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG#What%20is%20changing?

That page loads fine

Cmdr_Bond

Had a quick look at that...

After all the hoo-ha with unfair charges - it looks like they are just going back to the old ways...

Lets see, what is more "profitable" for the bank

You have a Preferred In Credit Rate Account, Premier Direct, Premier or Current Account and you try to make a purchase that would take you past your authorised overdraft limit - also you cannot get back into the black within 20 days

If the bank has YOUR financial interests in mind, then they should refuse the payment which would incur you:

• A £25 fee for the unpaid item AND
• A £10 fee for the 20 days (£0.50x20) in your authorised overdraft

Totalling £35

If the bank is more interested in making money, they would probably authorise the transaction. Worst case scenario, you cannot get back within your authorised limit within 20 days you would incur:

• A £25 fee for the paid item AND
• A £100 fee for the 20 days (£5x20) in your unauthorised overdraft

Totalling £125

In this sort of scenario - how can the bank justify authorising the payment - as it puts the customer at increased risk of getting further and further in debt.

LemonTree_3

I'm also a former A+L premier current account customer - my understanding when reading the new overdraft fees is also that my monthly overdraft usage fee doubles from £5 to £10.

I cannot open the OP's link, here is the one I've found:
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237880423035&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG

[FONT=designtimesp=4349]What are the new fees?[/FONT]

Your existing account:
Preferred In Credit Rate Account, Premier Direct, Premier and Current Accounts

Daily Arranged Overdraft Fees:
£0.50 each day (capped at 20 days each monthly statement period)

Daily Unarranged Overdraft Fees:
£5 each day (capped at 20 days each monthly statement period)

Paid Item Fees (note 3):
£25 for each paid transaction

Unpaid Item Fees (note 3):
£25 for each unpaid transaction

Note 3: From 16th April 2011, Paid and Unpaid Item Fees will now apply
for transactions below £10 in value on accounts which were formally
Alliance & Leicester.

fluffy123

Yeah, I currently pay £5 a month and from my reading of it, will now be paying double down to this.

My overdraft is £2,000 maximum although I'm not at the maximum point and it is going down - however, I also have a natwest current account with a similar £2,000 overdraft which I don't go into.

Debating now which one will actually charge me less per month and if it is worth shifting the debt over to the natwest account...hmmmm...

Cmdr_Bond

This new fee system actively discriminates against those people who slip up occasionally and encourages people to get to get a huge overdraft.

The problem comes when as I stated above, you start to incur charges.

Harpy

I have checked these fees changes at two different Santander branches with the manager and both have advised me that there will be no change and the fee will be capped at £5 per month for authorised overdrafts for former premier direct account holders.

wornoutmumoftwo

I thought the banks were starting to do more realistic charges (went overdrawn a few months back and got charged a total of £5).
Fortunately we've well out of the overdraft now so this shouldn't affect us.

premierfella

Harpy wrote: »

I have checked these fees changes at two different Santander branches with the manager and both have advised me that there will be no change and the fee will be capped at £5 per month for authorised overdrafts for former premier direct account holders.

It is always possible that I am misreading the summary of changes on the website, but it appears to clearly indicate that the cap will effectively double. I would check a third time with a copy of the summary of changes and see if they still give you the same answer.

Flyboy152

I just want to get this straight, if I transfer as much of my borrowings as I can, to maximise my arranged overdraft of say, for example, five thousand pounds, all I get charged is ten pounds a month and no interest? If it is, that is so cool. :cool: That would be a flat rate of 2.4%

Flyboy152

fluffy123 wrote: »

Yeah, I currently pay £5 a month and from my reading of it, will now be paying double down to this.

My overdraft is £2,000 maximum although I'm not at the maximum point and it is going down - however, I also have a natwest current account with a similar £2,000 overdraft which I don't go into.

Debating now which one will actually charge me less per month and if it is worth shifting the debt over to the natwest account...hmmmm...

Or switching it all to Santander for just ten pounds a month. At four thousand pounds that's a flat rate of just three per cent. Which is approximately seven or eight per cent APR.