MSE News: Overdrafts cost too much, financial watchdog says 10 April 2014 at 5:59PM in Budgeting & bank accounts 20 replies 3.6K views

Former_MSE_Helen

"Overdrafts are to be investigated by the Financial Conduct Authority after it found borrowers are paying too much..."

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Overdrafts cost too much, financial watchdog says



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PeacefulWaters

The regulator that thinks paid for in-credit bank accounts are the way forwards.

innovate

Can't remember when they limited how much payday lenders can charge, and restricted their practices to something that is commonly considered fair. Can someone remind me?

innovate

PeacefulWaters wrote: »

The regulator that thinks paid for in-credit bank accounts are the way forwards.

And clean accounts that have no introductory bonus.

So here we go, another "popular" push that is likely to result in everyone having to pay more for their banking, and get less out of it.

Thrugelmir

innovate wrote: »

Can't remember when they limited how much payday lenders can charge, and restricted their practices to something that is commonly considered fair. Can someone remind me?

The trouble with media coverage is that no one knows what's involved to run a business.

Thrugelmir

Use of overdrafts has become a 'habit' for consumers,

This is the real direction of the FCA's attack one suspects.

melvis

I've been "living in" my overdraft for many, many years. I didn't mind paying the £7-£10 a month charges, it was just another monthly outgoing I accounted for. Now, my bank have increased my charge to £20 a month (without warning :mad:) but it's given me the kick up the bum to pay it off and I'll have done so within the next 2 months

innovate

melvis wrote: »

I've been "living in" my overdraft for many, many years. I didn't mind paying the £7-£10 a month charges, it was just another monthly outgoing I accounted for. Now, my bank have increased my charge to £20 a month (without warning :mad:) but it's given me the kick up the bum to pay it off and I'll have done so within the next 2 months

They won't have it done without warning, but the relevant bit is that you got a wake-up call and are getting rid of your overdraft - congratulations! Hope you are with a bank that actually pays you interest for being in credit (TSB, Lloyds, Santander, nationwide etc).

MABLE

Disgusting I call it. If I use my overdraft the first £100 is free and then 10.9 per annum. Should never be allowed!

Archi_Bald

MABLE wrote: »

Disgusting I call it. If I use my overdraft the first £100 is free and then 10.9 per annum. Should never be allowed!

Can't tell whether you a jesting. But assuming you are not - what should not be allowed, and why not?

MABLE

Archi_Bald wrote: »

Can't tell whether you a jesting. But assuming you are not - what should not be allowed, and why not?

Apologies I was just being flippant. For me a very good deal and has not changed in years.