800,000% overdrafts

kevin52

High Street banks charging 800,000% on overdrafts. No, these are not dodgy door to door money lenders, or pay day loans. But the supposed models of financial integrity and probity.


http://www.bbc.co.uk/news/business-16002022

talana

On unauthorised overdrafts.. so people who have borrowed money without asking.
The fee for doing that should be punitive surely?
Alternatively, don't allow it at all. That one would work for me.

opinions4u

Don't go overdrawn then.

Simples.

JacksterD

I'd like to say it's shocking, but unfortunately it really isn't. I wish everyone was perfect like some of the other people on this thread, but there are desperate people out there who are refused an overdraft, or overdraft extension, and will end up in an unagreed overdraft due to their circumstances regardless of how they try to manage their money. Shameful behaviour from 'respected' institutions.

CLAPTON

JacksterD wrote: »

I'd like to say it's shocking, but unfortunately it really isn't. I wish everyone was perfect like some of the other people on this thread, but there are desperate people out there who are refused an overdraft, or overdraft extension, and will end up in an unagreed overdraft due to their circumstances regardless of how they try to manage their money. Shameful behaviour from 'respected' institutions.

surely the point of the story is that the OP wanted the overdraft to be refused; i.e. the poor person should have been prevented from having the money?

meer53

CLAPTON wrote: »

surely the point of the story is that the OP wanted the overdraft to be refused; i.e. the poor person should have been prevented from having the money?

So, you're saying it's the banks job to monitor what you're spending then ?

IrishGypsy

JacksterD wrote: »

I'd like to say it's shocking, but unfortunately it really isn't. I wish everyone was perfect like some of the other people on this thread, but there are desperate people out there who are refused an overdraft, or overdraft extension, and will end up in an unagreed overdraft due to their circumstances regardless of how they try to manage their money. Shameful behaviour from 'respected' institutions.

The funny thing is, is that by setting up a DD/SO/Cheque or using our debit card we're AUTHORISING the merchant to take money from our account, regardless of the accounts balance.

If you've paid for your weekly shop on your debit card and then buy something else on your card before that money has left (say it's under that strores floor limit) and head into an unauthorised OD, why should the bank NOT pay the money out when you've already recieved your goods/service up front??

I've had people say to me in branch before: "Why did you pay it when there was no money!?" to which I would reply: "Well, are you going to take the goods/food you've already used from the shop back then?"

They've got what they wanted, if they can't keep an eye on their own money, perhaps they shouldn't have a debit card in the first place and should stick with a Post Office account?

opinions4u

JacksterD wrote: »

I'd like to say it's shocking, but unfortunately it really isn't. I wish everyone was perfect like some of the other people on this thread, but there are desperate people out there who are refused an overdraft, or overdraft extension, and will end up in an unagreed overdraft due to their circumstances regardless of how they try to manage their money. Shameful behaviour from 'respected' institutions.

I'm sorry. I simply don't accept the assertion that people have to use any overdraft. Let alone an unauthorised one.

izools

JacksterD wrote: »

and will end up in an unagreed overdraft due to their circumstances

Which is self inflicted as a result of choosing to have a lifestyle unaffordable by ones means.

Even JSA is enough to live on. Anyone who spends more is spending on non essential items. Which is fine, when you can afford them.

Too many people refuse to make the big or small changes which negate the need for them to borrow; like move into cheaper accommodation, cancel monthly subscriptions, give up cigarettes / alcohol, give up branded food and / or takeaways, stop buying little trinkets or boutique items that take your fancy, etc.

opinions4u wrote: »

I'm sorry. I simply don't accept the assertion that people have to use any overdraft. Let alone an unauthorised one.

^this

tagq2

lanza, how did you manage to negotiate special terms on your debit card contract with the bank?

In response to your more general essay, why do you have a debit card? Why do you have a bank account?

You may be misunderstanding the relationship a commercial bank and/or its staff have with its customers.

Andystriker

lanza wrote: »

I specifically asked Santanders ******** in newton mearns for a debit card where i could never be overdrawn or incur charges. T



I asked for no overdraft

Lanza

Did you also ask them to wipe your @rse for you as well?