UK bank with no overdraft scam?

Emily_Joy

eurgbp wrote: »

Are there any banks in UK without overdraft scam?
All I want is if balance is zero then transaction is declined by bank. End of story.
These overdraft loans are quite scammy and sick

So if you book a hotel but decided not to show up, the hotel still charges you. If this means you go into overdraft, you go into overdraft and it costs you more.
It would be handy, I suppose, to avoid this charge by emptying your account.
Well, it doesn't work this way.
The only thing I can recommend is to turn on sms notifications. Many banks are willing to text you when the account balance goes below certain amount.

Flobberchops

I think I get the gist of what the OP is asking - which accounts will never allow the holder to go overdrawn, regardless of overdraft facility.


This is a tricky one as I've seen customers with Basic accounts go overdrawn, usually much to their confusion as they believed "they said my account can't do that". Unfortunately often card payments - especially smaller sums - are processed offline meaning they don't even show as pending until the merchant debits the customer 24, 48, 72 etc hours later. I also believe that unlike Direct Debits, Standing Orders have the ability to put a customer overdrawn regardless of whether they have an agreed facility.


I'm not aware of any banks that allow a customer to request an Online Only debit card. I suppose one alternative might be to only ever transact in cash; if you haven't got it in your pocket then you can't spend it? Also, many banks will offer SMS alerts or a fee-free buffer which means that if you take prompt action, accidentally going overdrawn need not lead to any fees.


A lot of the above is (hopefully) intelligent speculation based on personal experience, if there is anybody with a more technical understanding of how card payments are processed I'd be happy to be set straight.

jimjames

How about a bank that gives you text alerts before making your account overdrawn so you can pay money in to avoid it? If you can't manage your account to keep it in credit then it could be an option

adindas

eurgbp wrote: »

Are there any banks in UK without overdraft scam?
All I want is if balance is zero then transaction is declined by bank. End of story.
These overdraft loans are quite scammy and sick

eurgbp wrote: »

Thank you
This is what I have been looking for over 10 years in uk

Finally there is one decent UK bank

Why all of the fuzz the thing where you are fully in control to accept or to reject it. Many of current accounts will offer you an overdraft facility, based on the info you supply when applying for those account but you could simply reject it. I have open/close a few dozen current accounts many of them are offering an overdraft facility during the application and I simply reject it (drag the slider to £0) as I do not use them as my main account.

I am not aware any UK account where you don't have full control to cancel the overdraft facility. Even after you get an account with an overdraft facility by mistake, you could easily request the overdraft facility to be canceled anytime you want to. It is much easier to cancel the overdraft facility then to get get one approved.

If you do not want to go overdrawn, regardless of overdraft facility simply get a prepaid card or a saving account that give you cashcard to withdraw cash from cash machine. In the past I had a saving account where I get a cash card to withdraw money from the cash machines. I fully believe this product still exist nowadays.

born_again

Flobberchops wrote: »

I'm not aware of any banks that allow a customer to request an Online Only debit card.

Banks used to provide them to customers who were bad at controlling their accounts. ALL transaction had to go for authorisation. But even then, they could still go overdrawn in certain situations. These did not have contactless facility. But this has now changed thanks to contactless having to be authorised.

Also if you have £0.01p in your account and want to get cash. If the ATM only has £10 notes, then it has to let the customer get £10. Regulators state a bank can not stop a customer from accessing funds they have in their account.

boo_star

born_again wrote: »

Also if you have £0.01p in your account and want to get cash. If the ATM only has £10 notes, then it has to let the customer get £10. Regulators state a bank can not stop a customer from accessing funds they have in their account.

I find it hard to believe that these regulations would force a bank into giving a customer access to their funds by every method offered, even if it forces the bank into (perhaps unwillingly) lending the customer money.

Surely providing the customer with the ability to withdraw their penny via a branch or PO counter would satisfy this requirement?

eurgbp

wow , amazing, so many brainwashed/scared and with stockholm syndrom folks here
poor you, have not seen better right?
sure right blame the victims, it is their fault

also there is no reason for bounced direct debit charge to return with extra penalty... in civilised free world
fear and penalties work right?
keep you in line

Willing2Learn

Hi eurgbp

From everything you have said, I think you need to start budgeting properly, starting with setting yourself a monthly budget. Have you had a look at the MSE Budget Planner?

https://www.moneysavingexpert.com/banking/Budget-planning/

eurgbp

hey we have got another one here ))

born_again

boo_star wrote: »

I find it hard to believe that these regulations would force a bank into giving a customer access to their funds by every method offered, even if it forces the bank into (perhaps unwillingly) lending the customer money.

Surely providing the customer with the ability to withdraw their penny via a branch or PO counter would satisfy this requirement?

If a ATM is what they are using that that is what they can do. A bank can simply not stop/make them use another source, for a customer from using what means they want to get to their money.