Nationwide increasing overdraft rate to 39.9%

flower77g

For all customers, from 11th November


Saw some words hidden in small print on their internet banking site which links to:



https://www.nationwide.co.uk/support/product-support/current-account/current-account-changes


Also removing all fee free buffers, and in-credit interest from FlexPlus accounts

jonesMUFCforever

This is old news - now is the time to do something about it if you have an overdraft with them.

flower77g

The MSE article at https://www.moneysavingexpert.com/news/2019/07/nationwide-overdraft-changes/ makes no mention of the changes to in-credit interest rates, and provides no link to the other changes that are being made.

boo_star

flower77g wrote: »

The MSE article at https://www.moneysavingexpert.com/news/2019/07/nationwide-overdraft-changes/ makes no mention of the changes to in-credit interest rates, and provides no link to the other changes that are being made.

But it's old news for the forums at least. I remember this being posted a few weeks ago.

Ergates

flower77g wrote: »

For all customers, from 11th November


Saw some words hidden in small print on their internet banking site which links to:



https://www.nationwide.co.uk/support/product-support/current-account/current-account-changes


Also removing all fee free buffers, and in-credit interest from FlexPlus accounts

Under new legislation (not sure when it's taking effect - in the not too distant future), banks will no longer be able to charge higher interest rates on unarranged overdrafts than the do on arranged ones. Sounds like Nationwide are raising the rates on the latter rather than lowering the rates on the former.

mjm3346

flower77g wrote: »

The MSE article at https://www.moneysavingexpert.com/news/2019/07/nationwide-overdraft-changes/ makes no mention of the changes to in-credit interest rates, and provides no link to the other changes that are being made.

The article was about the increase in the overdraft rate and it covers that which is the only thing mentioned in this thread title.

mjm3346

Ergates wrote: »

Under new legislation (not sure when it's taking effect - in the not too distant future), banks will no longer be able to charge higher interest rates on unarranged overdrafts than the do on arranged ones. Sounds like Nationwide are raising the rates on the latter rather than lowering the rates on the former.

I think that will be the way most banks will go along with, as far as possible, refusing payments where it would take an account over any agreed overdraft limit - administratively it would probably be easiest and cheapest to stop all overdrafts so there is no chance of falling foul of the legislation which doesn't stop at making all lenders charge an APR and no fees.

boo_star

mjm3346 wrote: »

I think that will be the way most banks will go along with, as far as possible, refusing payments where it would take an account over any agreed overdraft limit - administratively it would probably be easiest and cheapest to stop all overdrafts so there is no chance of falling foul of the legislation which doesn't stop at making all lenders charge an APR and no fees.

Not possible.

What happens with card payments?

Let's assume a card payment isn't taken and the authorisation drops off after a few days. The only alternative is that authorisation holds last for 6 months which is massively impractical.