new bank charges

Sube-likes-a-bargain

Have been with the alliance and leicester for a few years and have always had an authorised overdraft. Just got a letter from them to say that is has now got a new name of overdraft usage fee and that if I use the agreed overdraft facility that I will be charged 50p a day to the max of £5. When you are watching every penny this doesn't help. Got my husband to change his account to them and most months we are overdrawn in the last week now we will be charged. Can they do this??? Want to know what others alliance and leicester customers think??

RayWolfe

Stop liking bargains and you may find you have more money than month left rather than more month than money.

Sube-likes-a-bargain

Thanks for your advice:exclamati It's not really the help I'm after. We are careful with our money and we are lucky that we have no other debts like most people. The only debt is what we may go over into our overdraft and as I'm at home looking after our children and an elderly father we only have one wage coming in to cope with the needs of a young growing family. Any helpful advice or comments about this new charge much appreciated.

YorkshireBoy

On average, how much debit interest do you currently pay each month?

sav4it

It sounds as though you are only just in the red for a short part of each month.
Could this idea work until you go back to work?

Apply for a credit card and spend whatever you would go overdrawn by each month and pay OFF IN FULL each month.
If you are very diligent, it would just buy you back the time/amount you can't quite afford each month.

Sube-likes-a-bargain

We only ever go overdrawn by a couple of hundred never any more. It just depends on needs and bills for that month. Last month we managed to stay in credit by £22! The interest they normally charged was only ever about 11p-30p. So it will be a huge jump if we are overdrawn the last ten days before payday as we will be charged £5.

Sube-likes-a-bargain

We could do the credit card idea but I'm annoyed that they can change the amount just like that by changing the name of the fee. Such a huge difference.

sav4it

Better still, apply for a 0% credit card and slow stooze. You can pay the minimum amount and by saving the difference, when the time comes to pay it off you'll probably have made that £200 thanks to the CC company in savings interest.Play them at their own game.

virgin_moneysaver

if you look in your original T&C it will state something along the lines that they reserve the right to change any T&C by giving you notice in writing beforehand - if you don't like the new T&C you have the right to close your account & move to another financial body - but be warned that the charging structure will change for a lot of people as the banks were not going to take being sued lying down - you can thank all the people who jumped on the reclaim bank charges band wagon for this - the customers who run their finances & accounts correctly & within the T&C like you & I are going to subsidize those who can't be bothered

and before you all jump over me - I know that there are genuine cases where circumstances were out of their control but there are plenty of people who don't even bother to open their statements or bills but can suddenly find the time & initative to pursue a reclaim case - if they just spent half that time in running their accounts & making themselves aware when the direct debits that THEY signed for are due then they wouldn't have got themselves into the mess that they did

right I'll just go & put my hard-hat on & take cover !

YorkshireBoy

Sube-likes-a-bargain wrote: »

We could do the credit card idea but I'm annoyed that they can change the amount just like that by changing the name of the fee. Such a huge difference.

Seize the opportunity!

Where was the incentive to manage yourself out of your overdraft when it was only costing you 11-20p per month? Surely a few 'lean' weeks would see you back into the black?

I appreciate it might be difficult with only one wage, and several mouths to feed, but there are other boards on the site which may help you:

Debt-free wannabe
OS board

Getting a buffer in your account should be your top priority. IMO there's not much point in moving to a new provider* because they're all going to be moving in the same direction with regard to overdraft usage fees/charges.


* You may get a 0% overdraft, but when this expires will you be in the same position?

DaisyFlower

I'm going to take cover with virgin money-saver and say I agree.

If you go overdrawn each money and spend the banks money then why shouldnt they charge?

All banks will look at the fee structure and "free" banking will become a thing of the past and all those who have stayed in the black will be penalised by all the reclaims.