LBG change overdraft charging structure

Consumerist

Sadly, people with high overdrafts have been living off the backs of those who occasionally dip into their overdraft. Now they have come to expect it as a God-given right.

Because the CMA are currently investigating bank overdrafts, it is likely that all banks will soon follow the trend started here.

This change is LONG overdue.

[Deleted User]

^^ yes lets kick the poor and those with debt problems (hence using their overdraft facility a great deal) while they are down yes?


Bearing in mind the problems in the past banks have had with charges for unauthorised overdraft (legality problems)..this new process is them sidestepping these issues and just bringing in via the front door much larger charges.


For example I currently pay around £24 per month to use my overdraft facility. This will rocket to £50 a month come November.


Its sad that they are getting away with this. Basically hitting the poorest and those struggling to get by each month the hardest.

Consumerist

It seems to me that LBG proposes to make the cost of overdrafts proportional to the amount borrowed and the time it's borrowed - with no surprises a month or two ahead but a sort of pay-as-you-go approach.

As an LBG customer, I really don't see a problem with that.

Concerns about personal debt have been raised by Bank of England and others in recent months. Perhaps LBG is hoping to offload potentially bad debt to other banks before the situation reaches a crisis point.

[Deleted User]

Consumerist wrote: »

It seems to me that LBG proposes to make the cost of overdrafts proportional to the amount borrowed and the time it's borrowed.

As an LBG customer, I really don't see a problem with that.

Concerns about personal debt have been raised by Bank of England and others in recent months. Perhaps LBG is hoping to offload potentially bad debt to other banks before the situation reaches a crisis point.

Yes, they aren't stupid. Does not effect me, but if I was banking with these cowboys I would be making for the hills

Consumerist

redditrabbit wrote: »

. . . Does not effect me, but if I was banking with these cowboys I would be making for the hills

And, as an LBG customer, I would be relieved to see you go.

GingerFurball_2

Zerinth wrote: »

^^ yes lets kick the poor and those with debt problems (hence using their overdraft facility a great deal) while they are down yes?


Bearing in mind the problems in the past banks have had with charges for unauthorised overdraft (legality problems)..this new process is them sidestepping these issues and just bringing in via the front door much larger charges.


For example I currently pay around £24 per month to use my overdraft facility. This will rocket to £50 a month come November.


Its sad that they are getting away with this. Basically hitting the poorest and those struggling to get by each month the hardest.

It doesn't kick the poor. Most 'poor' people aren't credit worthy enough to access borrowing. They're the big winners in this shake up because they won't be charged daily fees for going into an unauthorised overdraft, nor will they be charged fees for bounced payments.

The big losers will be people who have racked up a huge overdraft facility and who are constantly in it.

[Deleted User]

Consumerist wrote: »

And, as an LBG customer, I would be relieved to see you go.

Awwww did I offend you, I'm so sorry I dared to even suggest your perfect bank may not be as good as obviously think it is. I'm so glad you would be relieved to see me go.

I'm confused though as your comment makes no sense and contributes nothing to the discussion, thanks for taking the time to add nothing.

Consumerist

redditrabbit wrote: »

Awwww did I offend you, I'm so sorry I dared to even suggest your perfect bank may not be as good as obviously think it is. I'm so glad you would be relieved to see me go.

I'm confused though as your comment makes no sense and contributes nothing to the discussion, thanks for taking the time to add nothing.

Not in the least offended. Should I ever be a little overdrawn I will, in future, pay less than I would currently. Why should I be offended by that?

Not sure, however, what contribution your last post made to the discussion.