Free unplanned overdraft account from Lloyds Bank - not just for Muslims

Hominu

compmad1 wrote: »

While many will have to pay up to £80 a month if they go into the red, Muslims were told they would escape the charges.

Incorrect. It should be "Whilst those with an islamic bank account would escape the charges".

ANYONE can open an islamic bank account.

If you decide on a different account type, you need to agree to the possible charges of that account type.

Archi_Bald

baby_frogmella wrote: »

Does that sentence make you feel superior? Dude you need a girlfriend...

Did you seriously not even realise that puk999 was merely quoting the Lloyds website?

InsideInsurance

adrienne1945 wrote: »

Not good enough IMO. I think in the interest of impartiality there should also be a Christian Bank Account & a Buddhist one etc etc with the same benefits. Otherwise surely they can be accused of racisim by those who end up paying more than Muslims

What specific rules does Christianity and Buddhism have on banking? I am not knowledgable on buddhism but certainly Christianity, or more accurately Roman Catholic, rules on interest were dropped centuries ago

You have to remember that these arent accounts for muslims just accounts that follow the rules of islam. Anyone who wants an account that does that is free to open one.

Likewise you can get an islamic mortgage too but you'll find that you are probably worse off with one of those, especially as stamp duty is due when the bank buys the house for you and then again when they give the house to you at the end of the mortgage.

Herbalus

You're also forgetting the part in Lloyd's terms and conditions where they state that an unarranged overdraft will most likely be denied. I wouldn't rely on it, and certainly wouldn't get the account on the off chance it'd work.

Sharia law doesn't allow for interest - though I'm surprised Lloyds have waived the charges as they're not interest - so the bank can simply say 'no overdrafts then'.

It probably follows that your debit card won't work in places where it can't connect to the bank to check your balance e.g. planes, some trains etc.

InsideInsurance

Herbalus wrote: »

Sharia law doesn't allow for interest - though I'm surprised Lloyds have waived the charges as they're not interest - so the bank can simply say 'no overdrafts then'.

It doesnt allow you to profit from lending money (or allow others to either) unless there is shared risk/reward.

With the mortgage there is no interest charged but instead they have to pay rent as the bank owns the house until the capital has been paid. Paying rent, which is oddly similar to what the interest charges would have been, is seen as acceptable as you normally have to pay rent to live in a house owned by someone else.

compmad1

Lloyds bank Sharia accounts being featured today on Moneybox, Radio 4 at 12pm. Repeat Sunday 9pm.
Might be made clearer what is going on.

puk999

Wonder if Lloyd's will introduce a Christian Business account also? Interest can be charged but if any transactions are conducted on the Sabbath then the branch manager pops round and stones you to death* (Exodus 31:15)

* charges apply.

GingerFurball_2

It's not a 'free overdraft' on an Islamic account because the account can't go overdrawn in the first place.

Herbalus

GingerFurball wrote: »

It's not a 'free overdraft' on an Islamic account because the account can't go overdrawn in the first place.

A slight correction. They don't allow planned overdrafts, but say in their terms that unplanned overdrafts will usually be denied, so that's not a categorical decline. But otherwise you're right.

Hominu

GingerFurball wrote: »

It's not a 'free overdraft' on an Islamic account because the account can't go overdrawn in the first place.

So it's basically the same as the £10 per month "Control" account?