Can I refuse new bank charges??

Flutterby83

Hi all,
I have today received a letter from my bank informing me that they are changing the way they charge for overdrafts. I've had my light bulb moment and have been sorting out my debts since then, the overdraft included. However, these new charges mean that I am going to be charged over double the interest I was being charged per month, meaning that it's obviously going to take longer for me to clear. I had a similar letter from my credit card a few months back and it had a note on the bottom saying that if I did not agree to the changes then to contact them (the changes were good, not bad on that occasion) but there's nothing on this letter from the bank to say that I can refuse these changes. Can I refuse them or am I stuck with paying them the extra? Is it different because it's a bank account instead of a credit card? If I can refuse the changes, how do I go about it? I don't use this account anymore and it's only open because I was paying back the overdraft under my own terms, not the bank's so I'm not bothered if I have to close it. Thanks in advance x

Tixy

You cannot opt out of these charges (or you could by repaying the overdraft), because it is always repayable on demand.

The options are likely
-accept them and get it paid off asap
-try to move the debt elsewhere
-default on the account and ask them to consider freezing charges & interest (likely having a big impact on your credit file).

Flutterby83

Thanks Tixy, I am trying to pay it off as soon as is reasonably possible but unfortunately I don't have the option of moving it elsewhere Thank you for your advice x

Tixy

Are the charges still less than the APR on your card would be?

If not and if you had any room left on your card could you put some day to day spending on the card and so leave more money in the account to get the overdraft paid off.