Warning: Smile introducing authorised overdraft fees

CompoundInterest

Smile have announced new terms and conditions from 5th December, and buried in the small print is a new charge of £20 for authorised overdrafts. You get hit for it annually, and every time you change the overdraft amount, if it's larger than £500. Previously authorised overdrafts had no fees.

Clearly they want people to shrink their overdraft limits and thereby run more risk of using unauthorised overdrafts.

Needless to say I am not impressed and will look around for a new bank. Shame, they were quite good up to now.

New T&Cs available in PDF form from http://www.smile.co.uk/terms

Andy_L

The way I read it it's £20 for an "agreed formal overdraft limit" of more than £500. ie you still get £500 overdraft for free (other than interest), although that limit is subject to status

I bit of a dig around & perhaps a secure message is called for

M_Thomson

They are also increasing the overdraft interest rate from 11.9% APR to 15.9% APR. A four point increase is very excessive. Thanks very much bank charge reclaimers!

dodo

I must have missed out somewhere, as I dont remember getting these details so far.
So thanks for the warnings and its now down to going through the latest T&Cs with a fine toothcomb to see how it affects my accounts.
I agree with 'CompoundInterest' that they have been pretty good so far and I will be sorry to leave them.

mountainchrisriver

I gave up on Smile when they failed to increase their in-credit interest rate on the current account... better deals elsewhere... :rolleyes:

yellowmonkey

M_Thomson wrote: »

Thanks very much bank charge reclaimers!

Its all our fault is it. Any excuse

ym

M_Thomson

yellowmonkey wrote: »

Its all our fault is it. Any excuse

ym

Mostly yes.