HSBC to hike overdraft fees from March

Consumerist

jaybeetoo wrote: »

My children had a bank account with debit card that didn’t allow them to go overdrawn. I used to pay their pocket money into it. It sounds like some adults could do with such an account.

But, sadly, the banks have fought, tooth and nail, to prevent adults having such accounts - until they were compelled by regulation in some cases.

Consumerist

Thrugelmir wrote: »

. . . The credit card being an interest free overdraft.

Exactly my point. :T

S77CHO

Just to clarify, I have an arranged OD facility with natwest for 5k. I have never used it, but planned to next summer.
Currently the rate is 17.9%, are they not obliged to honour this arrangement ?
I realise rates are variable, but a rise to 40% is ridiculous, and surely this breaches some sort of fair practice code.

YorkshireBoy

S77CHO wrote: »

Just to clarify, I have an arranged OD facility with natwest for 5k. I have never used it, but planned to next summer.
Currently the rate is 17.9%, are they not obliged to honour this arrangement ?

You were making "plans" to borrow money at 17.9% EAR?! Why not "plan" to get a loan instead if you have/will have no savings?

An overdraft is for short term emergency borrowing, not for an event some 6-7 months away!

I realise rates are variable, but a rise to 40% is ridiculous, and surely this breaches some sort of fair practice code.

Over the last 10 years or so this website, along with others, has campaigned for better clarity on O/D costs, a removal of unarranged O/D fees, and a simpler O/D cost structure. And here we have it, 40% EAR. Same income for the banks, just supplied by more people than before. As the saying goes, "be careful what you wish for..."

Consumerist

S77CHO wrote: »

Just to clarify, I have an arranged OD facility with natwest for 5k. I have never used it, but planned to next summer.
Currently the rate is 17.9%, are they not obliged to honour this arrangement ?
I realise rates are variable, but a rise to 40% is ridiculous, and surely this breaches some sort of fair practice code.

Why not sign up for a 0%-interest-on-purchases credit card and pay 0% interest over the medium term and then around 20% if you borrow for longer. This seems to me to be a better arrangement than being held hostage to the vagaries and whims of a bank who can call in the overdraft at any time.