MSE News: Co-op Bank borrowers to pay less after overdraft fees revamp

Former_MSE_Paloma

Co-operative Bank current account customers who go overdrawn will see some fees fall from today, as it revamps charges ...

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Co-op Bank borrowers to pay less after overdraft fees revamp




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tripled

Informal charge (applied when you go over the buffer into your arranged overdraft)
£10/day
£20/day

Either it's very expensive to use an arranged overdraft with the co-op, or MSE's penchant for providing incorrect/out-of-date information strikes again.

Edit: Indeed, it appears there is no daily charge for using an arranged overdraft, although they do charge interest.

http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/common/account-charges.pdf?int_cmp=CA_overdrafts_root_account-chargespdf_accountchargescurrentaccounts

Former_MSE_Paloma

Hi tripled, thanks for this - i've tweaked the copy to say there's a £10/day charge for arranged overdraft customers who go above the buffer and above their agreed overdraft limit.

tripled

MSE_Paloma wrote: »

Hi tripled, thanks for this - i've tweaked the copy to say there's a £10/day charge for arranged overdraft customers who go above the buffer and above their agreed overdraft limit.

The copy also says

Buffer (allows you to go into your arranged overdraft by a set amount before fees are charged)
Up to £20
Up to £20

My understanding according to that document is that the buffer only applies to informal overdrafts. There is no reference to a "buffer" before incurring interest on an arranged overdraft that I can see!

Former_MSE_Paloma

Hi tripled, I checked with Co-op as it said the buffer was available to all customers - I asked whether this was for both customers with an arranged and an unarranged overdraft and it confirmed this was correct. So say if you have a £1,000 overdraft and you go above this limit, you get the extra £20 buffer too.

tripled

MSE_Paloma wrote: »

Hi tripled, I checked with Co-op as it said the buffer was available to all customers - I asked whether this was for both customers with an arranged and an unarranged overdraft and it confirmed this was correct. So say if you have a £1,000 overdraft and you go above this limit, you get the extra £20 buffer too.

In which case wouldn't that be "over your arranged overdraft" as oppsed to "into your arranged overdraft"?

Former_MSE_Paloma

I think that's a fair point to avoid confusion - thanks tripled.