Lloyds new overdraft rate is designed to deceive

oscarisapc2001

Fortunately, this overdraft issue does not affect me personally. I do however come into contact with a lot of people who have a precarious financial existence. Not everyone in debt is managing their money carelessly. Illness, unemployment, unexpected rent rises and a whole range of life issues can come without warning, and tip family budgets into deficit. Many of these people have already used up other forms of credit and the next step down from an overdraft is the Pay Day loan. These are capped by law at a maximum 42.6% equivalent APR. Martin's Blog (10/1/12) that overdrafts can be worse value than payday loans was written before this latest rise. The fact that a bank (OK I was incorrect in stating that it hadn't repaid the bail out but it still benefited from taxpayer assistance), can get away with increasing its charges by so much for credit is offensive to me and I hope to others as well.

[Deleted User]

O/D are used by most people when they run short at the end of the month, so assume they use £70 for 5 days the interest would be 50p, far cheaper than many short term loans. O/Ds shouldn't be used to prop up a life style.

MEM62

TrustyOven wrote: »

Why are families feeling poorer especially at this specific time?

Because many live beyond their means. Borrowed money is still relatively easy to come by and, in particular overdrafts are often viewed as readily available spending cash rather than the exceptional emergency facility that they should be.

myars

doubling any ones charges if they live of their overdraft get a loan its cheaper and you pay off the capital Lloyds are pigs with their noses in troughs:p

Thrugelmir

myars wrote: »

Lloyds are pigs with their noses in troughs:p

The cost of providing services isn't free though. There's a media onslaught against the banks. Yet none against the huge amounts that the nation wastes on takeaway food (for example) and the vast profit margins that companies enjoy on those products.

myars

bailed out and not able to pay big amounts to their savers but make huge profits from their debtors which they treble (nearly ) overnight . no the services arent free but 2 banks charging roughly the same seems to the general public a weird coincidence . am i posting this in the cheap takeaway section shome mishtake shurley

walkonsand

Which are both part of the same Banking group, which no doubt wanted to charge the same for all customers

myars

walkonsand wrote: »

Which are both part of the same Banking group, which no doubt wanted to charge the same for all customers

i used bham midshires years ago but didnt realise that these were part of the same group

worried_jim

myars wrote: »

bailed out and not able to pay big amounts to their savers but make huge profits from their debtors which they treble (nearly ) overnight . no the services arent free but 2 banks charging roughly the same seems to the general public a weird coincidence . am i posting this in the cheap takeaway section shome mishtake shurley

That's it, I can't take anymore, I'm calling the grammar police.

myars

worried_jim wrote: »

That's it, I can't take anymore, I'm calling the grammar police.

not for the obvious