Number of Agreements-Equifax.

eskbanker

MattMattMattUK said:
The FT seems to estimate that there had been no net change to overall costs, but that the cost of borrowing had shifted from overdrafts to credit cards and short term loans and that the group that previous faced high charges from unauthorised overdrafts are carrying on with the same behaviour, but being subsidised by everyone else. 

And on that subject, it's those who live beyond their means and go into DMPs, etc, that drive up the costs for everyone else....

But yes, I agree that the FCA's claims ought to be taken with at least a pinch of salt, given they're basically marking their own homework here!

Nasqueron

Another "win" for Martin and Co naively believing that by getting rid of fixed fees, banks would all compete to offer lower OD % as opposed to all of them charging the max they could get away with

Qyburn

I asked the question as I don't have an overdraft myself. If I read correctly my "Club Lloyds" account would charge me 27.5%, and a basic current account would be 39.9%. I can't believe anyone would pay those sort of rates except for a very short term emergency. Presumably (hopefully) the OP's on a much better deal.

Dandytf

Rep 39.49 apr Var, I think this OD has maybe slightly Increased possibly recently.
I kind off refer to Monthly costs and work towards Reducing Fees in turn reduces OD amount.
This is when I believe that these +20/30's Apr's have been setup quite Smart to extract Max fees form OD users.
If as example I instantly reduce OD from 3k to 2k or less, the monthly running costs savings are Minimal.

off topic revisiting CC board soon, unexpected existing offer could be used for Home Essential Item.
--Edited--
OD Calculator does state I have >50% Reduction in OD Costs since I made part use of Isa.
I think i had been referring to test reductions as If I had reduced OD by <50% then Cost savings are Minimal.

CliveOfIndia

Dandytf said:

Rep 39.49 apr Var

Ouch!  That's higher than most mainstream credit cards!  Although not particularly surprising, overdrafts have always been hideously expensive.  It's also worth bearing in mind, a bank is within their rights to cancel an overdraft facility at any time and demand immediate and full repayment.  I suspect this doesn't happen very often in practice, but they do have the right to do this.  So even aside from the high interest you're paying, it's wise not to reply on an overdraft.

Dandytf said:

off topic revisiting CC board soon, unexpected existing offer could be used for Home Essential Item.

Define "essential" ?   If you're having to take out credit in order to buy it, there are very few things which are genuinely essential.

Food, heating, mortgage/rent for sure, I don't think anyone would argue those aren't essential.  But the list of truly essential items is actually very small.  And if you are needing to rely on credit for truly essential items, then you need to be seeking qualified help, whether this be charities, CAB, whatever.

eskbanker

Dandytf said:

Rep 39.49 apr Var, I think this OD has maybe slightly Increased possibly recently.
I kind off refer to Monthly costs and work towards Reducing Fees in turn reduces OD amount.
This is when I believe that these +20/30's Apr's have been setup quite Smart to extract Max fees form OD users.
If as example I instantly reduce OD from 3k to 2k or less, the monthly running costs savings are Minimal.

off topic revisiting CC board soon, unexpected existing offer could be used for Home Essential Item.
--Edited--
OD Calculator does state I have >50% Reduction in OD Costs since I made part use of Isa.
I think i had been referring to test reductions as If I had reduced OD by <50% then Cost savings are Minimal.

Given the way they're phrased, I'm not sure if I'm understanding your point(s), but just to be clear, one of the key features of the 2020 overdraft costs change was to simplify them, such that charges are based solely on interest rather than fixed daily costs, etc.  Therefore, if you reduce your overdraft by a third then the cost of servicing that is also cut by exactly a third, no more and no less, so I have no idea why you'd conclude that the effect of making overdraft repayments is "minimal", if you're eliminating interest charges in 39% territory, as these should be the most cost-effective of all such repayments unless any of your other debts have higher APRs....

Grumpy_chap

Dandytf said:

39.49 apr Var,

off topic revisiting CC board soon, unexpected existing offer could be used for Home Essential Item.

You are carrying debt at high interest rates.
You have limited income.
It really seems inadvisable to take further credit for whatever the "Home Essential Item" is, it must be far more essential to reduce your debt exposure.

I really recommend preparing a SoA (Statement of Affairs) and sharing in the DfW (Debt-free Wannabe) part of the forum to make the first step towards a controlled and managed financial position.

Qyburn

Dandytf said:

Rep 39.49 apr Var, I think this OD has maybe slightly Increased possibly recently.

Wow. That changes my earlier estimate. Putting £1,000 into that HL fund four years ago would have earned £72 less platform costs. Reducing overdraft by £1,000 instead, would have saved £2,700 interest.

Of course the comparison is extreme because of the poor choice of fund, but a say a global tracker might only have earned £400 or £500. 

Qyburn

Dandytf said:

If as example I instantly reduce OD from 3k to 2k or less, the monthly running costs savings are Minimal.

I think thats one of the illusions people fall into. They have say £1,000. Saving £32.90 per month by reducing their overdraft seems trivial, so might as well just spend it.

Dandytf

@CliveOfIndia
I appreciate OD's can be recalled anytime, let's hope not this time.
'Essential' replacement Cooker since 2012.

thanks honestly only had 23-24 existing CC Offer, seems it's been removed or Extended, though I'll check via CC Board.