MSE News: Overdrafts cost too much, financial watchdog says

Archi_Bald

Apologies for expecting you weren't being flippant

Pincher

Overdraft is an unsecured loan.
In essence, it IS a Pay Day Loan.

JKSandy

The problem when these bodies do these kind of investigation we see other charges or fee's in other areas creep in.

I do see in the not so distant future the end of free bank accounts.

Consumerist

JKSandy wrote: »

. . I do see in the not so distant future the end of free bank accounts.

What free bank accounts?

Someone has to pay or the banks would go bust. What you mean is that you can see that you may have to pay for your banking services instead of someone else.

chris40

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

Work it out,
if you borrow £999 Barclays charge 27%. Borrow £1001 and the annual rate is 54%.
At the second threshold the story is the same.
Even if you overdraw £10000 they take "only" 11%.

Barclay's Quaker founders must be revolving in their graves!

melvis

innovate wrote: »

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).

I've checked all of my online documents/statements and there's nothing and I haven't received anything by post, it just jumped up in January :mad:

Money-Saving-King

It does make me wonder with things like this if the Financial Conduct Authority are just trying to find ways to keep/justify themselves in a job.

Consumerist

Money-Saving-King wrote: »

It does make me wonder with things like this if the Financial Conduct Authority are just trying to find ways to keep/justify themselves in a job.

I certainly believe that's the only reason why Ofgem has referred the energy market to the Competition Commission. Ofgem wanted to raise their public profile and then, having got themselves in the news recently, confirmed themselves to be as useless as we had always thought they were.

kennyh_2

How does this overdraft examination differ from the High Court Action taken by the OFT? Will the FCA not need to go to court concerning level of charges(?) and when is it likely to happen?

iAMaLONDONER

Pincher wrote: »

Overdraft is an unsecured loan.
In essence, it IS a Pay Day Loan.

Credit cards are unsecured too!