Has MSE caused my overdraft rate to increase by 24%?

eskbanker

DJMC wrote: »

That last quote is really helpful, but I can't find it on the page you linked to. Could you please advise under which heading it appears?

It's towards the bottom of the page, clicking the 'show all' button at the top expands all sections for ease of reading.

DJMC wrote: »

They've done precisely what your quote says they wouldn't do - wake me.

They don't say they won't wake you, they say they'll delay sending "to avoid waking you too early", although no doubt your definition of too early and theirs will differ....

DJMC

eskbanker wrote: »

It's towards the bottom of the page, clicking the 'show all' button at the top expands all sections for ease of reading.

They don't say they won't wake you, they say they'll delay sending "to avoid waking you too early", although no doubt your definition of too early and theirs will differ....

Got it. Thanks.

yksi

Malkytheheed wrote: »

yksi wrote: »

This can impact a credit history. If I had an overdraft and was able to avoid using it, I would definitely not remove it from my account. It shows I'm able to manage available credit responsibly.

This is not correct.
Well managed credit is a good thing. Overdrafts (used or not) are not a good thing. Lenders prefer to not see them. At all.

Could you let the mortgage lenders know please? Getting an overdraft was their specific recommendation to me when advising how I could make myself look more attractive to mortgage lenders. But you seem to know more about what lenders want than the lenders themselves.

Malkytheheed

yksi wrote: »

Could you let the mortgage lenders know please? Getting an overdraft was their specific recommendation to me when advising how I could make myself look more attractive to mortgage lenders. But you seem to know more about what lenders want than the lenders themselves.

Well that specific recommendation was wrong.
And no... I'm not going to take time out my day to let "the mortgage lenders" know. Did you have specific ones in mind? Maybe I could find a few hours today to waste. :rotfl:

abz88

eskbanker wrote: »

Indeed, and CONC chapter 7 is specifically about "Arrears, default and recovery (including repossessions)" so the reference to customer contact within that chapter should be interpreted in that specific context.

CONC 7.9.1 makes it fairly clear that the contact referred to is primarily phoning (to pursue arrears, etc) rather than routine automated texts:

Thanks for clarifying!

DJMC wrote: »

My alarm is set to 8am. I usually get up at 8.30. I wouldn't expect any FCA governed organisation to contact me outside 9am - 9pm. And to back me up further...

FCA MCOB 3A.4.2 refers to unsocial hours being "on a Sunday or before 9am or after 9pm on any other day."
Source: https://www.handbook.fca.org.uk/handbook/MCOB/3A/4.pdf

I'm sure if I call FCA tomorrow (after 9am) they'll agree this is the general rule. Is a text a "call" - well that may be in question but 3A.4.1(4) says a communication may not be made at an unsocial hour and a text is a communication.

I have made no request not to be called before 9am as I know it's against the rules. Neither have I opted in to text alerts (to my knowledge) and these have only started today, the day I am briefly overdrawn under the new 39.9% regime.

MCOB relates to Mortgages and Home Finance, so nothing to do with your overdraft and it says before 9am on a Sunday or after 9pm on any other day. So the text you received on a Wednesday falls within those timings (even if the did apply).

I am fairly confident neither Nationwide or the FCA set their unreasonable hours by the fact DJMC on the MSE Forum boards likes to have a long lie so sleeps in most days.

JuicyJesus

MSE campaigns (and ensuing reactive regulation) tend to have the effect of limiting consumer choice and making things "simple" at the cost of them costing more and being more restrictive. A desire for "simplicity" led to the same 50p overdraft charges that are now banned because they cost more, but that ban has now led to unsecured borrowing costs rising for everyone regardless of status. MSE also tends to take the tack that literally nothing to do with banking should cost money, which begs the question of where the money to run all these lovely services should come from.

Banks have to make money somehow and if you cut off all of their revenue streams they either have to make up for them somewhere or we, as a country, move to the model of banking being a not-for-profit public utility. Your choice.

Malkytheheed wrote: »

This is not correct.
Well managed credit is a good thing. Overdrafts (used or not) are not a good thing. Lenders prefer to not see them. At all.

Complete b*llocks.

Payday loans have that effect because they indicate extreme financial distress to the point you'll be willing to pay hundreds of percent in interest to get cash instantly and with short repayment terms. Having an overdraft concretely does not. You will find quite a few people who have overdrafts (used or not) and are able to get financial products without difficulty, including me.

DJMC wrote: »

My alarm is set to 8am. I usually get up at 8.30. I wouldn't expect any FCA governed organisation to contact me outside 9am - 9pm. And to back me up further...

The sun tends to wake me up at about 5 during the summer months and I used to have to get up at 6am to go and work for an FCA governed organisation. I know I can complain to the FCA about these horrible conditions but who do I complain to about the sun?

boo_star

DJMC wrote: »

My alarm is set to 8am. I usually get up at 8.30. I wouldn't expect any FCA governed organisation to contact me outside 9am - 9pm. And to back me up further...

FCA MCOB 3A.4.2 refers to unsocial hours being "on a Sunday or before 9am or after 9pm on any other day."
Source: https://www.handbook.fca.org.uk/handbook/MCOB/3A/4.pdf

I'm sure if I call FCA tomorrow (after 9am) they'll agree this is the general rule. Is a text a "call" - well that may be in question but 3A.4.1(4) says a communication may not be made at an unsocial hour and a text is a communication.

I have made no request not to be called before 9am as I know it's against the rules. Neither have I opted in to text alerts (to my knowledge) and these have only started today, the day I am briefly overdrawn under the new 39.9% regime.

Please do.

I'm sure they'll tell you that overdrafts aren't mortgages or home finance.

Malkytheheed

JuicyJesus wrote: »

Complete b*llocks.

You will find quite a few people who have overdrafts (used or not) and are able to get financial products without difficulty, including me.

Correlation is not the same as Causation...

Just because you had no difficulty getting a finnancial product does not mean that overdrafts do not impact your credit file. They can and do.
Many lenders view them unfavorably. Obviously not to extremes. It's not the same or as damaging as defaulting on an account or a pay day loan. But many lenders view overdrafts (used or unused, but particuarily if used) as a sign of poor money managment and add this to the pile of other data when making lending decisions.

These are FACTS. :money:

So please check before you call someone out as talking "Complete b*llocks". I work in the finnancial sector for several major lenders and I am aware of certain criteria they look at.

JuicyJesus

Malkytheheed wrote: »

Many lenders view them unfavorably. Obviously not to extremes.

Well managed credit is a good thing. Overdrafts (used or not) are not a good thing. Lenders prefer to not see them. At all.

I would say that if a product that multiple banks give out as a matter of course when opening current accounts, and one of the most common financial products around, is something that lenders "prefer not to see... at all", that would be rather extreme.

Especially funny since any number of lenders will also offer overdrafts. Generally speaking, lenders do not tend to offer products to people that they also consider toxic.

Ashen

DJMC wrote: »

Go on... say "well, you could have switched your phone off overnight or disabled texts" and I'll reply a) THEY could have read the rule book and b) my father is at death's door in a nursing home so I keep phone, and texts, enabled. There, saved you from feeling bad eh?

I have a feeling you're the type of person that would complain if you got it at 9am, saying there was no reason for them not to notify you earlier because something could have happened with your 'father at death's door' at the same time.