obtaining credit - insanity

Niksan

I'm sure if you ask them not to give you the money if it means falling over any scheduled overdraft facility then they would, I guess the reason this is a default mechanism is the consequences of missing a direct debit or some other payment might be greater than the penalties gained from going over your overdraft. You could also argue they don't need to pay interest when you're in the black because you didn't ask for it.

Nikel

The_White_Horse wrote: »

if there was inadequate funds in the account to process the payment, they should have simply declined to pay it.

What, and miss out on a nice £25 profit for piddly all inconvenience. I think thou are a bit naive.

mramra

The_White_Horse wrote: »

I think you will find they GAVE me the money. if there was inadequate funds in the account to process the payment, they should have simply declined to pay it. No one asked them to pay the amount for me. Decline it.

Oh dear, personal finance really isn't your strong point is it?

It seems the bank were right to ask questions relating to your financial (in)competence...

Cleaver

The_White_Horse wrote: »

I have an agreed overdraft with First Direct. Due to lots of movements of monies, I went over my agreed limit last month twice by £4.00 and 37p. This resulted in a £25 fee being incurred - which I was not happy about.

Therefore, as the movements will be continuing for the next few months at least, I thought I would increase my buffer zone by a hundred quid or so - to avoid any other fees being incurred.

You would think I asked them for a 500k mortgage, not 100 quid. Its insanity. they wanted to have a 15 minute interview - after 4 minutes I told them to f**k off

So to summerise. A financial institution lends you money (your overdraft), you then exceed your lending limits without asking, you then do it again and you then ring them up and ask for an extension to your credit facility. At this point any half-decent financial institution will have alarm bells ringing that signal they have a customer who, a) isn't managing their money properly, b) is running out of money or, c) both.

So I guess at this point the financial institution is looking for the financially incompetent person they have lent money to to calmly explain the situation to one of its employees so that they can understand exactly what's happened and make a decision. After all, you're now a credit risk who needs to regain their trust. But you told them to 'f*ck off'.

Put yourself in their shoes White Horse, would you lend you money at this point? I wouldn't lend money to someone who told me to 'f*ck off' just because I wanted fifteen minutes of their time to explain why they keep going over their agreed borrowing limit.

As other posters have pointed out though, it is a delicious irony to see capitalism's biggest fan get bitten in the backside by capitalism. Maybe a public sector bank where everyone is nicey nicey to each other would be more up your street?

Pobby

Remember about 30 years ago I had £10k in savings but was charged £11 for going overdrawn on my current account. Went into my little branch, personal banking in those days. Said I was not happy, look at my savings and right away it was credited back.

Oh and banks selling you rubbish. I inherited £30k about 12 years ago. Went into a certain bank to pay it in. The cashier said I am not allowed to accept this amount, you will have to see the lady over there. Lady over there then says, I can only take deposits up to £5k, you will have to a bloke from upstairs.

Saw said bloke. Got all the guff, invested it and waited years for it to come back to what it should of been.

Another example. When I was earning, self employed a number of years back, my wife would often pay in monthly on my behalf, £4k each month. She would moan that the cashier would say, have you any plans for this money, her reply is put it in my husbands account.


Last week I went to my bank and got a load of guff because there is nearly £5k in the current account. Went on and on about doing something with it. They just don`t leave you alone. Have decent bit in savings and ISAs with them. Always getting nagged to see their financial advisor. I tell them that I have my own. Some lady got stroppy with me over it.

So I kind of know where Horsey is coming from. Think it is the first time I have agreed with him.

Coopdivi

The_White_Horse wrote: »

btw - can all the people who told me I should move bank if i didn't like the unauthorised bank fee charges please tell me the bank I should be at that does not charge these fees.

I am sure there are lots around, but being thick I agreed to join a bank that did charge it. I await the people in the know to tell me which bank i can choose to join that would not charge me these fees.

Cheers all.

What about a Credit Union?

http://www.abcul.org/home

Then you can tell everybody you're in a union :T

[Deleted User]

Pobby wrote: »

Remember about 30 years ago I had £10k in savings but was charged £11 for going overdrawn on my current account. Went into my little branch, personal banking in those days. Said I was not happy, look at my savings and right away it was credited back.

Oh and banks selling you rubbish. I inherited £30k about 12 years ago. Went into a certain bank to pay it in. The cashier said I am not allowed to accept this amount, you will have to see the lady over there. Lady over there then says, I can only take deposits up to £5k, you will have to a bloke from upstairs.

Saw said bloke. Got all the guff, invested it and waited years for it to come back to what it should of been.

Another example. When I was earning, self employed a number of years back, my wife would often pay in monthly on my behalf, £4k each month. She would moan that the cashier would say, have you any plans for this money, her reply is put it in my husbands account.


Last week I went to my bank and got a load of guff because there is nearly £5k in the current account. Went on and on about doing something with it. They just don`t leave you alone. Have decent bit in savings and ISAs with them. Always getting nagged to see their financial advisor. I tell them that I have my own. Some lady got stroppy with me over it.

So I kind of know where Horsey is coming from. Think it is the first time I have agreed with him.

HSBC do this whenever you deposit more than a few grand it's not a problem though. They ask 'would you like to see one of our advisors' I say 'no, thanks' and that's it.

They probably ask it a hundred times a day and get a yes once in a blue moon, and are used to being rejected. Never had them not take no for an answer though nor could I imagine them doing it.

[Deleted User]

Coopdivi wrote: »

What about a Credit Union?

http://www.abcul.org/home

Then you can tell everybody you're in a union :T

That might be a good option, if he tried to set up another account elsewhere he might struggle to get past the credit check.

ERICS_MUM

The_White_Horse wrote: »

what is actually very telling is all the self assured answers - such as "it doesn't add up" "a man of means never goes overdrawn".

it just clearly shows that these people actually have no clue what is going on. I guess the world is easy for those with one salary (PAYE deducted), one account, a few direct debits and not much else on. ahhh, those were the days.

my real point though, which no one (bar one person) seems to understand is that I have no problem with incurring the charge. that was merely explaining the story. i shall say that again, just for the few remaining morons in the room - I DO NOT HAVE A PROBLEM WITH THE CHARGE - WHILST I AM OF COURSE NOT HAPPY TO BE CHARGED (and they have since dropped it) I REALISE I WENT OVER THE LIMIT AND THAT IS THAT. That is not and was not ever what I was moaning about. So all the clever talk of "sort out your finances" really is a non sequitor.

The point is, as an existing customer, with lots of savings in the bank, a request for a 100 buffer zone should not require a 15 minute interview. It should be an instant yes or no. I don't care if it is "no" - as long as I don't have to waste my time telling them what deductions come out of my salary at source etc etc.

.

that's not up to you. If the bank decides that's how they want it done, that's how its done.

PS as you are obviously a man of means, I do hope you have spread your money across various banks to ensure all balances are covered by the FSCS limits.

ERICS_MUM

somethingcorporate wrote: »

I don't think they view you as "bad with money" especially with savings accounts with them. It is more likely about the management of your means rather than the means themselves.

I still think they just want to use it as an excuse to sell you something. I recently deposited my house deposit into an account I hadn't used much before and I quickly had 2 letters and a phone call inviting me for interview to talk about how I could get the "most" from it.

Sounds just like a trigger event they can try and leverage some more cash from you.

Of course it is, banks are businesses and are mandated to sell fee-paying services and interest-making accounts. What you see as an "excuse" is actually an opportunity for the bank.