MSE News: Bank charges higher than pricey payday loans

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Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
in Debt-free wannabe
This is the discussion thread for the following MSE News Story:

"Fees for exceeding your overdraft can be higher than the most exorbitant loan costs despite a charges overhaul by banks ..."
Read the full story:
Bank charges higher than pricey payday loans



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Comments

  • ~Brock~
    ~Brock~ Posts: 1,710 Forumite
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    Earlier this week we were up for banning Payday lenders.

    So what are we trying to ban now, bank accounts?

    Why don't we just ban everything now and then we wont have to worry about anything at all and life will be perfect. Won't do much for sales of the Daily Mail though......

    <\irony>
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
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    ~Brock~ wrote: »
    Earlier this week we were up for banning Payday lenders.

    So what are we trying to ban now, bank accounts?

    Why don't we just ban everything now and then we wont have to worry about anything at all and life will be perfect. Won't do much for sales of the Daily Mail though......

    <\irony>

    We're not for banning anything. We're for fair fees and charges for everything.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Some people are for banning Payday lenders.

    MSE aren't included in those some people.

    Neither am I.
  • ~Brock~
    ~Brock~ Posts: 1,710 Forumite
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    My post was a possibly poor attempt at irony which appears to have been missed.

    I was referring to the encouragement, earlier this week, to support an MP's proposals in terms of interest rate caps, which will in itself either restrict or end the availability of the type of lending that is now being compared in favourable terms to bank overdrafts.
  • iblametheparents
    iblametheparents Posts: 629 Forumite
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    Can I ask why Barclays was excluded?
  • blueberrypie
    blueberrypie Posts: 2,395 Forumite
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    The article talks about *unauthorised* overdrafts, but compares the charges on those to charges for *authorised* borrowing from payday loan companies. That's hardly fair, meaningful or constructive.
  • MrLeeLee
    MrLeeLee Posts: 163 Forumite
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    Last month a year ago I remember sitting in front of the TV and watching the absolute shocking Supreme Court decision coming out live on TV.

    At the time I felt so angry as it was so unjust and nothing has changed my mind since, It was a sickening decision.

    What's even more sickening, is that a year down the line and these banks are STILL doing it and getting away with it.

    They can re-write their t&cs with fancy jargon and change the bank charge pricing structure (I know, why don't we charge £1 a day!) as much as they want, they are disgusting, corrupt, depraved and dishonest and the government need to stand up to these guys and say enough is enough... Fat chance of that though!
  • BackOnTrack
    BackOnTrack Posts: 574 Forumite
    edited 11 December 2010 at 2:52AM
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    blueberrypie wrote: »
    The article talks about *unauthorised* overdrafts, but compares the charges on those to charges for *authorised* borrowing from payday loan companies. That's hardly fair, meaningful or constructive.

    Isn't the point more that it can be cheaper to get a payday loan than it is to go into an unauthorised overdraft on some bank accounts?
    There's no sense crying over every mistake.
    You just keep on trying till you run out of cake.
  • blueberrypie
    blueberrypie Posts: 2,395 Forumite
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    BackOnTrack wrote: »
    Isn't the point more that it can be cheaper to get a payday loan than it is to go into an unauthorised overdraft on some bank accounts?

    You mean the point is that authorised borrowing is often cheaper than unauthorised borrowing? Why would that be a surprise?
  • gailey_2
    gailey_2 Posts: 2,329 Forumite
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    Hubby has in past got payday loan think on 120pounds paid 160back only becuase santander charges for going over and bounced dd would have been 35quid a time.

    its not ideal but been a lifesaver in past.
    plus we never got in trap of doing it every month.
    pad by xmas2010 £14,636.65/£20,000::beer:
    Pay off as much as I can 2011 £15008.02/£15,000:j

    new grocery challenge £200/£250 feb

    KEEP CALM AND CARRY ON:D,Onwards and upward2013:)
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