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Urban myth overdaft charge limt
When asked to direct poeple to where and when this was written into statutory law they just repeat that it is true. Sounds like a typical urban myth to me, is there such a law and if there is why is it not common knowledge!
Any clarity on this would help shut them up (although it would be nice if true)
Comments
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It's not true.
It's "overdaft"to believe otherwise!
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Your banking terms and conditions cover what is going to be charged, varies from place to place, his bank may have a maximum charge, there is certainly not a blanket rule.
Barclays as an example charge between £0 and 75p - £2 a day depending on your limit and how much you are in it with a monthly maximum
Santander have a monthly (not annual) cap of £50!Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Banks are free to set their own tariff. Many fo the banks have a cap per month that they set. However, there is nothing anywhere near low as £90 a year.
A guide to overdrafts is here:
https://www.moneyadviceservice.org.uk/en/articles/overdrafts-explained
And remember, that the fee is just one part. Interest charged is the other.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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Thanks everybody for the quick replies and the link0
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Moneyineptitude wrote: »It won't be only £90 a year!
I think he's probably got confused about a monthly cap to be honestSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Or just confused...
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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