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Lloyds Overdraft Terms deemed Unfair in new Bank Charges Victory

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  • Gentoo365
    Gentoo365 Posts: 579 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Bank accounts are not free anyway. Customers that are always in credit are providing the bank with funds to lend out and forgoing any share of profit from this in return for payment and account management services.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Gentoo365 wrote: »
    Bank accounts are not free anyway. Customers that are always in credit are providing the bank with funds to lend out and forgoing any share of profit from this in return for payment and account management services.
    My "share" of my banks lending profits amounts to between 3-5% AER (on several 10s of £K)...risk free! I get this in addition to "payment and account management services".

    I'm happy to lend on those terms. :)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Gentoo365 wrote: »
    Bank accounts are not free anyway. Customers that are always in credit are providing the bank with funds to lend out and forgoing any share of profit from this in return for payment and account management services.

    And the money earnt by the bank covers the cost of services provided. If only running a bank was that easy.....
  • jimjames
    jimjames Posts: 18,671 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Gentoo365 wrote: »
    Bank accounts are not free anyway. Customers that are always in credit are providing the bank with funds to lend out and forgoing any share of profit from this in return for payment and account management services.

    Certainly not free.

    I much prefer to be paid for holding a bank account. In fact paid to hold many bank accounts.

    If people stopped going overdrawn then the bank wouldn't have the funds to do that.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    jimjames wrote: »
    Certainly not free.

    I much prefer to be paid for holding a bank account. In fact paid to hold many bank accounts.

    If people stopped going overdrawn then the bank wouldn't have the funds to do that.


    Banks derive significantly more revenue from those in credit (by way of net interest income) than from those who overdraw.
  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    YorkshireBoy wrote: »
    My "share" of my banks lending profits amounts to between 3-5% AER (on several 10s of £K)...risk free!


    You, me and the rest of society underwrite the risk.
  • Money-Saving-King
    Money-Saving-King Posts: 2,044 Forumite
    Gentoo365 wrote: »
    Bank accounts are not free anyway.

    Upload a bill then.
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