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

Malkytheheed

JuicyJesus wrote: »

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.

Can you please stop suggesting your opinion as if it's truth. Here is one example of 100s of article that comfirm what I have said.

"Could an overdraft affect future credit applications?
There are a few main ways that an overdraft can affect your creditworthiness. Firstly, as a credit facility, most overdrafts are reported on your Credit Report as an account with a limit. This will be viewed as a potential debt by other lenders, even if you’re not using it.

Unlike other forms of credit like a personal loan or credit card, overdrafts are generally repayable on demand. In the eyes of a potential lender, an overdraft facility potentially increases the risk of you becoming overindebted."

Source - https://www.checkmyfile.com/articles/3002/banking/how-does-an-overdraft-affect-your-credit-report.htm

born_again

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...

Well that me out of a job as when we are busy & we start working at 06:00. I always send contact text pre 09:00 as we can't call a customer before, unless they ask for a early call.

In the thousands I and fellow works have sent NOT ONE has mentioned that it was inconvenient or rude to send at that time.
Same on bank holidays... Some people even ask for call on Christmas day.....:rotfl:

JuicyJesus

Malkytheheed wrote: »

Can you please stop suggesting your opinion as if it's truth. Here is one example of 100s of article that comfirm what I have said.

Your_quote wrote:

Overdrafts are reported on your Credit Report as an account with a limit. This will be viewed as a potential debt by other lenders, even if you’re not using it.

What_you_actually_said wrote:

Lenders prefer to not see [overdrafts]. At all.

Rather different isn't it?

enthusiasticsaver

DJMC wrote: »

I found out in December that my authorised overdraft rate had increased in November to 40% from 16%.

We have two authorised overdrafts, £5k and £3k, and being self employed with varying income each month I didn't mind using the facility regularly to help with budgeting.

The other day I saw Martin Lewis on the TV clucking like a hen in front of a crowd asking them to applaud him for the success in bringing the banks to task over overdraft fees. I'm assuming his success and their gain is my loss?

I've now transferred my savings into my current accounts as a buffer against going overdrawn. Martin would say that makes much more sense - not paying 16% (or now 40%) and losing 1 or 2% in savings interest.

But to me it represents wiping out my savings and makes me nervous. That nervousness isn't worth the saving I'm making in not going overdrawn. Illogical? Perhaps. But I wish things had been left as they were.

The changes are down to the FCA not Martin Lewis. Banks are required now to be more open about overdraft charges which in some cases were higher than payday loans.

If you have up to £8k of overdrafts, authorised or not, then it makes no sense to have money sitting in savings earning a pittance. It may make you nervous to use those savings to repay overdrafts so then build yourself a bigger buffer.

DJMC

abz88 wrote: »

Thanks for clarifying!



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).

You're wrong again, getting a little tiresome now.

As I said, FCA MCOB 3A.4.2 refers to unsocial hours being "on a Sunday or before 9am or after 9pm on any other day."

You say it says just "after 9pm on any other day" with no reference to the mornings, but you're wrong. Read it again. It says "before 9am or after 9pm on any other day."

It also doesn't say "before 9am on a Sunday", just "on a Sunday"

MCOB & CONC are both FCA controlled areas. Therefore if the FCA consider it unreasonable to contact a customer before 9am or after 9pm in one area it's likely they consider it unreasonable in all areas.

DJMC

born_again wrote: »

Well that me out of a job as when we are busy & we start working at 06:00. I always send contact text pre 09:00 as we can't call a customer before, unless they ask for a early call.

In the thousands I and fellow works have sent NOT ONE has mentioned that it was inconvenient or rude to send at that time.
Same on bank holidays... Some people even ask for call on Christmas day.....:rotfl:

Who is "we"? If you're in the FCA regulated world, and have been for a little time, you'll know you cannot contact customers before 9am or after 9pm on weekdays, or on a Sunday.

If, say, you're a tradesman then carry on sending your texts early. That's what I've been used to in the last 12 months of home renovations, recently completed in December.
My plasterer arrives at 7am too!
BUT... during this busy time I KNEW I was likely to receive such early texts, calls, and arrivals and even if I didn't like it there was nothing I could do about it as there's no Government regulation of trades.

The difference with the Nationwide's 7.04am text was a) I had no prior warning they were going to send these "alerts"; b) They are FCA governed and so I DO have a right of redress; c) I'm aware that they are likely to be breaking FCA communication rules.

DJMC

JuicyJesus wrote: »

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?

Aw bless. Have you thought about better curtains?

I'm fortunate that I work for myself and get up when I like.

eskbanker

DJMC wrote: »

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.

DJMC wrote: »

I had no prior warning they were going to send these "alerts"

They notified these in the same August (and September) emails as the new overdraft charges, as quoted in post #9 above:

We’re introducing new text alerts (by 18 December) to make it even easier for you to manage your money. You’ll automatically be opted in to these.

Chances are they'd have been advised in the same Ts & Cs update in online banking that you accepted you clicked past too....

The FAQ page you were looking at also explains the opt-in, and perhaps more importantly the opt-out, arrangements.

DJMC

eskbanker wrote: »

They notified these in the same August (and September) emails as the new overdraft charges, as quoted in post #9 above:Chances are they'd have been advised in the same Ts & Cs update in online banking that you accepted you clicked past too....

The FAQ page you were looking at also explains the opt-in, and perhaps more importantly the opt-out, arrangements.

They can opt me in automatically but they can't then communicate with me during unsociable hours. The latter trumps the former drug those times.

Once they've paid me the £100 for this breach they'll no doubt advise me to opt out. If I stay opted in and they text again before 9am they'll still be breaking the rules - another £100 thank you. And so on...

grumiofoundation

DJMC wrote: »

They are FCA governed and so I DO have a right of redress.

Out of interest what redress are you looking for?

I suppose you could complain, and if successful nationwide could be forced to offer you 16% overdraft again. You then transfer this money back into your "savings" account (N. B. if amount of savings = amount overdrawn you don't have savings).

But surely would be simpler and quicker for you to send the up to £1,100 that you are now saving by no longer having money in overdraft to nationwide directly?

May sound harsh but you were making a stupid choice before and at least this has stopped you making that stupid choice...