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

Former_MSE_Helen

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 ..."

Read the full story:

Banks agree to code to help limit overdraft charges

tifo

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].

Kyresa

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-m

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.

NorthernStudent

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!

2sides2everystory

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_2

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:

NorthernStudent

2sides2everystory wrote: »

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!)

2sides2everystory

NorthernStudent wrote: »

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

NorthernStudent

2sides2everystory wrote: »

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.

2sides2everystory

NorthernStudent wrote: »

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.