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    • MSE Naomi
    • By MSE Naomi 29th Nov 19, 11:01 AM
    • 349Posts
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    MSE Naomi
    Banks to stop counting overdrafts as ‘available funds’ – what you need to know
    • #1
    • 29th Nov 19, 11:01 AM
    Banks to stop counting overdrafts as ‘available funds’ – what you need to know 29th Nov 19 at 11:01 AM
    Three banks have changed the way they show customers' 'available balances' this week, and at least seven more will by mid-December, as the financial regulator brings in new rules on how overdrafts are displayed to customers. But some HSBC and First Direct customers have been left confused by the new changes and worried they've lost cash - so here's a rundown of what's changing and what to look out for...
    Read the full story:
    'Banks to stop counting overdrafts as ‘available funds’ – what you need to know'

    Click reply below to discuss. If you haven’t already, join the forum to reply.
Page 1
    • Consumerist
    • By Consumerist 29th Nov 19, 12:05 PM
    • 5,298 Posts
    • 2,647 Thanks
    Consumerist
    • #2
    • 29th Nov 19, 12:05 PM
    • #2
    • 29th Nov 19, 12:05 PM
    It won't take long for customers to get used to it and it's a long overdue change, if you ask me.


    The true cost of these overdrafts will soon become evident as well when new regulations, with the cost as an APR, come into force in April.


    It's going to be a bit of a wake-up call for some in persistent overdraft.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • Sea Shell
    • By Sea Shell 29th Nov 19, 12:08 PM
    • 3,163 Posts
    • 6,329 Thanks
    Sea Shell
    • #3
    • 29th Nov 19, 12:08 PM
    • #3
    • 29th Nov 19, 12:08 PM
    Good!! It can lull people into a false sense of security, if available balance includes available overdraft.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
    • DigForVictory
    • By DigForVictory 29th Nov 19, 12:12 PM
    • 10,621 Posts
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    DigForVictory
    • #4
    • 29th Nov 19, 12:12 PM
    • #4
    • 29th Nov 19, 12:12 PM
    Barclays, who didn’t include it anyway, had a really helpful phone banking app upgrade with screenshots of before & after and explaining why. I’m bemused the other banks didn’t take a look & crib the idea wholesale, especially after the Twitter anxiety.
    • northwalesd
    • By northwalesd 29th Nov 19, 12:47 PM
    • 405 Posts
    • 320 Thanks
    northwalesd
    • #5
    • 29th Nov 19, 12:47 PM
    • #5
    • 29th Nov 19, 12:47 PM
    Barclays, who didn’t include it anyway, had a really helpful phone banking app upgrade with screenshots of before & after and explaining why. I’m bemused the other banks didn’t take a look & crib the idea wholesale, especially after the Twitter anxiety.
    Originally posted by DigForVictory
    Both the Halifax and Lloyds Android apps currently have a link 'Your balance layout is changing' which takes you a webpage where it's quite clearly explained, along with examples of before and after. Doesn't apply to me as none of my accounts have an overdraft facility.
    • soulsaver
    • By soulsaver 29th Nov 19, 3:29 PM
    • 2,642 Posts
    • 1,330 Thanks
    soulsaver
    • #6
    • 29th Nov 19, 3:29 PM
    • #6
    • 29th Nov 19, 3:29 PM
    Those that now think they've lost money when they haven't... are better off than before when they didn't think they'd lost money... when they had.. lol!
    • born again
    • By born again 29th Nov 19, 6:22 PM
    • 1,356 Posts
    • 751 Thanks
    born again
    • #7
    • 29th Nov 19, 6:22 PM
    • #7
    • 29th Nov 19, 6:22 PM
    So people have just ignored all the stuff that get sent out advising them of the changes.....
    • Ben8282
    • By Ben8282 29th Nov 19, 6:35 PM
    • 4,763 Posts
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    Ben8282
    • #8
    • 29th Nov 19, 6:35 PM
    • #8
    • 29th Nov 19, 6:35 PM
    Those that now think they've lost money when they haven't... are better off than before when they didn't think they'd lost money... when they had.. lol!
    Originally posted by soulsaver
    I'm sure there will be several threads on the subjuct of money disapearing from accounts ...
    • Ben8282
    • By Ben8282 29th Nov 19, 6:38 PM
    • 4,763 Posts
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    Ben8282
    • #9
    • 29th Nov 19, 6:38 PM
    • #9
    • 29th Nov 19, 6:38 PM
    Although I can't really see that it makes much difference one way or the other, the idea of showing available funds was not a bad one. The balance and available funds were always shown separately and there should not really have been any confusion. Now people will have to add the overdraft facility to the balance to discover the available funds amount and these days having to do this without an app or text alert or something similar to assist them will be just too much for some people.
    • jonesMUFCforever
    • By jonesMUFCforever 30th Nov 19, 1:03 PM
    • 26,347 Posts
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    jonesMUFCforever
    I think this is a stupid idea with no benefits but will cause a lot of confusion to many customers.
    What goes around - comes around
    give lots and you will always receive lots
    • Socajam
    • By Socajam 30th Nov 19, 3:39 PM
    • 710 Posts
    • 1,067 Thanks
    Socajam
    I think this is a stupid idea with no benefits but will cause a lot of confusion to many customers.
    Originally posted by jonesMUFCforever
    Well then they should keep what little cash they have under their mattress.
    If you have to explain to people that you have say 500 in your account and your overdraft is 1500 = 2000
    Then something should go off in their brains that out of that 2000, only 500 is really theirs, the 1500 belongs to the bank and it comes with an overdraft fee which is not cheap.
    People need to stop wanting something for nothing - that 1500 overdraft is other people's money that the bank lends their customers who have a choice whether to use it or not.
    I have a 3500 overdraft sitting there for emergencies only. I refuse to be caught in the overdraft trap that I foolishly did years ago.
    • jonesMUFCforever
    • By jonesMUFCforever 30th Nov 19, 4:37 PM
    • 26,347 Posts
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    jonesMUFCforever
    I don't think anybody is looking for something for nothing here - its just stupid IMO that anybody needs telling in the way that they are doing now what available balance is and whether they are using an overdraft or not.
    What goes around - comes around
    give lots and you will always receive lots
    • born again
    • By born again 30th Nov 19, 4:46 PM
    • 1,356 Posts
    • 751 Thanks
    born again
    I don't think anybody is looking for something for nothing here - its just stupid IMO that anybody needs telling in the way that they are doing now what available balance is and whether they are using an overdraft or not.
    Originally posted by jonesMUFCforever
    I see this as a precursor too....
    The regulator coming down hard on overdrafts. So the vast majority of people will not be having one.
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 30th Nov 19, 5:03 PM
    • 6,497 Posts
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    Blackbeard of Perranporth
    Good. My available balance remains the same. Exactly what I have left in my bank.
    Cardiac Arrest - Electrical - Patient unconscious! Heart Attack - Plumbing - Patient conscious!
    Defibrillators Cannot Cure a Heart Attack!
    • Robisere
    • By Robisere 30th Nov 19, 5:10 PM
    • 3,012 Posts
    • 4,209 Thanks
    Robisere
    I don't think anybody is looking for something for nothing here - its just stupid IMO that anybody needs telling in the way that they are doing now what available balance is and whether they are using an overdraft or not.
    Originally posted by jonesMUFCforever
    The real stupidity is demonstrated here on this forum many times by people who have not understood that an overdraft is a debt. When the overdraft gets bigger and the bank decides to either demand it back or close their accounts, there is a sorry tale on here. An overdraft is debt and people need to understand that. I applaud this move. I have been in debt myself, through no fault of my own, but not for many years. Nowadays I have a Ł250 overdraft that I did not want, I am fortunate and careful enough to have avoided using an overdraft with the 3 banks I have been with, for over 30 years.

    It's all about managing your money. I like to see my account balance showing as what I actually have.
    I think this job really needs
    a much bigger hammer.
    • Missus Hyde
    • By Missus Hyde 30th Nov 19, 5:29 PM
    • 470 Posts
    • 589 Thanks
    Missus Hyde
    If you have to explain to people that you have say 500 in your account and your overdraft is 1500 = 2000
    Then something should go off in their brains that out of that 2000, only 500 is really theirs, the 1500 belongs to the bank and it comes with an overdraft fee which is not cheap.
    Originally posted by Socajam
    Quite.

    So the banks are having to state the blindingly obvious to help their customers manage their money successfully.
    Last edited by Missus Hyde; 30-11-2019 at 5:32 PM.
    It's a far, far better thing that I do, than I have ever done; it is a far, far better rest that I go to, than I have ever known........Sydney Carton.
    • born again
    • By born again 30th Nov 19, 6:13 PM
    • 1,356 Posts
    • 751 Thanks
    born again
    Quite.

    So the banks are having to state the blindingly obvious to help their customers manage their money successfully.
    Originally posted by Missus Hyde

    Oh Yes......

    Something that the regulator thinks Joe Public need
    • soulsaver
    • By soulsaver 1st Dec 19, 12:54 AM
    • 2,642 Posts
    • 1,330 Thanks
    soulsaver
    Maybe the regulator is trying to force banks to recognise that some members of the public have more challenges than others.
    • Ben8282
    • By Ben8282 1st Dec 19, 1:30 AM
    • 4,763 Posts
    • 2,624 Thanks
    Ben8282
    The real stupidity is demonstrated here on this forum many times by people who have not understood that an overdraft is a debt. When the overdraft gets bigger and the bank decides to either demand it back or close their accounts, there is a sorry tale on here. An overdraft is debt and people need to understand that. I applaud this move. I have been in debt myself, through no fault of my own, but not for many years. Nowadays I have a Ł250 overdraft that I did not want, I am fortunate and careful enough to have avoided using an overdraft with the 3 banks I have been with, for over 30 years.

    It's all about managing your money. I like to see my account balance showing as what I actually have.
    Originally posted by Robisere
    I think you are missing the point.
    Your account balance does show as the amount that you actually have!
    Available funds shows the amount available which rightly includes the overdraft limit as that is the amount available for withdrawal.
    Example with a Ł250 overdraft limit:
    BALANCE Ł1000 AVAILABLE Ł1250
    What is confusing about that?

    It is nothing to do with encouraging overdraft use or getting into debt.
    • Ben8282
    • By Ben8282 1st Dec 19, 1:34 AM
    • 4,763 Posts
    • 2,624 Thanks
    Ben8282
    I see this as a precursor too....
    The regulator coming down hard on overdrafts. So the vast majority of people will not be having one.
    Originally posted by born again
    Could you clarify what you mean here. Are you saying the vast majority of people will not want one or that you believe that the vast majority of people are going to have their overdraft facility taken away? Just curious.
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