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MSE News: Banks agree to code to help limit overdraft charges

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

"Britain's major banks have agreed not to issue charges for just exceeding an overdraft limit ..."
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  • tifotifo Forumite
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    We support the further commitment from the major banks to ensure all their full-facility accounts will benefit from the option to receive alerts and to have safety buffers.

    Does this mean those with basic accounts [not full facility] will not benefit from some of the new measures whilst these are the customers most likely to get charged [because there's a reason they can't get a full facility account].
  • KyresaKyresa Forumite
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    It's done nothing.

    What people want, is when they say I don't want to go overdrawn and don't pay anything that would make me go overdrawn, is for the banks to adhere to that and not pay things "for your convenience" so you get levied with a charge from the bank on recall, and a charge from the company for non payment.
  • c-mc-m Forumite
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    Barclay's basic account already comes with a buffer.

    We still need a cap on charges though - £8 is a fair figure.

    Also yes, people should have the option to tell the bank to take any payment that takes them overdrawn.
  • I think my Barclays account comes with a £10 buffer already. I don't have an overdraft (and don't want one), but this buffer has come in handy before!
    No longer a student, but still paying for it!

    NatWest Overdraft £[STRIKE]1600[/STRIKE] [STRIKE]1450[/STRIKE] [STRIKE]1200[/STRIKE] [STRIKE]1100[/STRIKE] [STRIKE]950[/STRIKE] [STRIKE]700[/STRIKE] [STRIKE]450[/STRIKE] 0! :D
    Other debts consolidated into a loan £3000 over 3 years at 8.8%:D
  • Does this do anything to stop charges of £22 every 5 working days or part thereof for a Barclays customer using even the teensiest part of their "Personal Reserve" or is that not a real overdraft facility?
  • Premier_2Premier_2 Forumite
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    A somewhat misleading title, I think, as the above post illustrates.

    Perhaps in light of the comment:

    However, there will be no cap on the number or amount in charges a bank can levy.

    A more appropriate item title may have been:

    Banks agree to code not to limit overdraft charges

    :cool:
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • edited 21 November 2011 at 7:37PM
    NorthernStudentNorthernStudent Forumite
    53 Posts
    edited 21 November 2011 at 7:37PM
    Does this do anything to stop charges of £22 every 5 working days or part thereof for a Barclays customer using even the teensiest part of their "Personal Reserve" or is that not a real overdraft facility?

    Not sure on this one. One would hope so though! It maybe depends on how the buffer is set (and how conscientious the person setting it up is!)
    No longer a student, but still paying for it!

    NatWest Overdraft £[STRIKE]1600[/STRIKE] [STRIKE]1450[/STRIKE] [STRIKE]1200[/STRIKE] [STRIKE]1100[/STRIKE] [STRIKE]950[/STRIKE] [STRIKE]700[/STRIKE] [STRIKE]450[/STRIKE] 0! :D
    Other debts consolidated into a loan £3000 over 3 years at 8.8%:D
  • Not sure on this one. One would hope so though! It maybe depends on how the buffer is set (and how conscientious the person setting it up is!)
    The buffer? I think you mean the reserve limit. There is nothing else to my knowledge. As to who set it up, well most of them were originally set up by computer. My 80+ year old parents still don't know what it is they were given by default :(
  • The buffer? I think you mean the reserve limit. There is nothing else to my knowledge. As to who set it up, well most of them were originally set up by computer. My 80+ year old parents still don't know what it is they were given by default :(

    No, I mean the buffer.

    When I set my account up, it was explained to me that I had a £10 buffer (in effect a £10 overdraft). An overdraft and reserve were offered to me (through application), both of which I rejected. I was wondering if you could have a £10 buffer then an overdraft or reserve (or both), or if having an overdraft or reserve would remove that £10 buffer. The info on current accounts doesn't actually specify the buffer as a feature of the account, so I expect that you can't have both the buffer and an overdraft.

    Have you or your parents been caught by the reserve fees? If so, I'm sorry. They seem costly and are probably hard to escape from.
    No longer a student, but still paying for it!

    NatWest Overdraft £[STRIKE]1600[/STRIKE] [STRIKE]1450[/STRIKE] [STRIKE]1200[/STRIKE] [STRIKE]1100[/STRIKE] [STRIKE]950[/STRIKE] [STRIKE]700[/STRIKE] [STRIKE]450[/STRIKE] 0! :D
    Other debts consolidated into a loan £3000 over 3 years at 8.8%:D
  • I was wondering if you could have a £10 buffer then an overdraft or reserve (or both)
    Wonder no more. You can't.
    ... or if having an overdraft or reserve would remove that £10 buffer.
    Absolutely.
    The info on current accounts doesn't actually specify the buffer as a feature of the account
    It isn't and I would never rely on such a thing.
    Have you or your parents been caught by the reserve fees?
    No way Hose, although I fear that tens of thousands cough up on a regular basis.
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