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Overdraft changes April 2020

I am aware of changes coming to overdraft charges, which means basically your bank wont be able to charge you a fee. Currently my bank rbs charges me £6 per month, but on checking with my bank, they couldn't help me

The reply I got, was
I am unable to locate any notification regarding the changes in Arranged Overdraft Usage Fee. I can confirm that you will receive a pre-notification if there would be any changes regarding the same.

Most banks have made there customers aware what the changes will be, and one other bank Im with, starling bank, will have 3 types of interest rates; 15% 25% 35%, and these compared to others are the cheapest I have seen. Looks like some banks will set the interest rate at 49%

Comments

  • Socajam
    Socajam Posts: 1,238 Forumite
    1,000 Posts Second Anniversary Name Dropper
    There are two choices:

    Live within your means, or
    Use the banks money and pay what they decide their overdraft fees should be.

    I know what I will do, learn to live within my means.
  • This is my plan and has been for the last few months, clearing my debts, and nearly debt free, debt free from end of Dec

    Next step is to clear my overdraft, and reduce it to £0, but the bank not been very helpfull
  • What do you want them to do?
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    edited 18 December 2019 at 6:29PM
    Other than the Starling mention, what is the purpose of this thread?
  • The Financial Conduct Authority (have announced changes to the overdraft system, now I would have thought, my bank could tell me, how they intend to deal with this
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    The Financial Conduct Authority (have announced changes to the overdraft system, now I would have thought, my bank could tell me, how they intend to deal with this
    Be patient. The changes are not due until April 2020 are they?
    If you will be debt free from the end of December as you claim then you won't be using the overdraft facility will you so I really don't see the pressing concern.
  • born_again
    born_again Posts: 23,745 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    The Financial Conduct Authority (have announced changes to the overdraft system, now I would have thought, my bank could tell me, how they intend to deal with this

    They will in due time.
    Variation of terms is usually 90 days. So plenty of time yet.

    And to let anyone know what it's going to be prior to them announcing their rate is very sensitive information.
    Life in the slow lane
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