Fixed daily and monthly overdraft charges to be banned - MSE News

Paul_Herring

One-Eye wrote: »

Old system - you are slightly overdrawn and a council tax direct debit makes you even more overdrawn, leading to higher overdraft fees.

Wonderful new system - you are slightly overdrawn and your bank refuses to pay the direct debit for your council tax leading to refused payment bank charge. Council demands immediate payment for the whole year, and your only possible source of credit is a pay day lender or the council will take you to court and send in the bailiffs when you can't pay.

You seem to have forgotten the bit about going to jail for not paying your council tax...

Consumerist

Well, if this means the end of the so-called "free banking" lie then I'm all for it.

It's about time we all paid our fair share of banking costs instead of dumping them on the few in financial difficulties.

Free banking - good riddance to bad rubbish, if you ask me.

For the record, I don't have an overdraft and haven't used one for years.

NowInspired

Lloyds Bank's daily overdraft fees are astronomical.

badmemory

Transaction charges may well be the cause of stopping the use of contactless for small bills. I'd certainly go back to one large cash withdrawal than pay dozens of small charges. Business costs will go up because of the cash handling charges increasing.



It could well be cheaper to pay all your council tax etc in one payment than have 10/12 charges a year. This will lead to a further complaint that those who have savings will be able to save 11 transaction charges, when those without savings can't pay up front. This is obviously all the fault of people who do have savings.

Consumerist

For those with large overdrafts, it might be a good idea to start preparing for the worst.

One possible reaction from the banks might be to reduce overdraft limits or even call them in for settlement. If you have any savings with the same banking group (not just the individual bank) then your savings might be raided to settle some or all overdraft balances. Now would be a good time to start saving elsewhere before the axe falls.

Paul_Herring

Free banking - good riddance to bad rubbish, if you ask me.

When I get a decent rate of return on money held with the bank, I may concede that we'd have free banking, but in reality, the difference between the pittance they pay me for having money with them and the amount they charge those borrowing money is considered the 'fee' I currently pay for my 'free' banking.

Onebrokelady

You can pay your council tax in cash at your local council offices as well,in fact you should be able to pay all your bills in cash otherwise surely you are being discriminated against,I got into big trouble with my overdraft and was literally living on it from month to month but when I opened my new account and it came with a £1200 OD I reduced it down to £50 but have not had to use it

Paul_Herring

You can pay your council tax in cash at your local council offices as well

That sort of presumes that you have the cash-in-hand to begin with.

Which, if you're in debt to the point where banks may start refusing you even more debt due to the unintended consequences of what this thread is about, isn't necessarily a given...