Bank of Scotland £4.80 daily overdraft fee
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lostinfrance2
Posts: 2 Newbie
Hi,
I have a £3.5k arranged overdraft with BOS which I used to pay monthly about £100, but now being charged at least £4.50 per day. Is there any way round this-ie paying monthly again or going with a loan? Just thought I'd find out before contacting the bank.
Thanks
I have a £3.5k arranged overdraft with BOS which I used to pay monthly about £100, but now being charged at least £4.50 per day. Is there any way round this-ie paying monthly again or going with a loan? Just thought I'd find out before contacting the bank.
Thanks
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Comments
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You are obviously affected by the change in overdraft fee structure that has been in force for 6 months now. Personal overdrafts are for short term emergency borrowing and not long term use. You need a loan or maybe a 0% credit card. Why do you need this overdraft ?0
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Yes, as above, all Lloyds Banking Group brands, including Bank of Scotland, changed their overdraft fees last November, to a daily charge of 1p per £7 borrowed, so if you owed exactly £3,500 then that would be £5 per day.
At the time of making the changes, they did offer assistance for those who'd find them difficult, including conversion to loans - chances are that particular 'offer' would no longer be in force but no harm in asking them what they can do.
Best option though is obviously to make plans for repaying the debt in whatever form it is....0 -
Yes, as above, all Lloyds Banking Group brands, including Bank of Scotland, changed their overdraft fees last November, to a daily charge of 1p per £7 borrowed, so if you owed exactly £3,500 then that would be £5 per day.
At the time of making the changes, they did offer assistance for those who'd find them difficult, including conversion to loans - chances are that particular 'offer' would no longer be in force but no harm in asking them what they can do.
Best option though is obviously to make plans for repaying the debt in whatever form it is....
Most of the offer letters were a reduction in fees for six months, to enable customers to adjust or make headway with payments, as you say it would have expired now. I got an email saying my offer was due to end on the 2nd May.
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Why are you using this overdraft like this? Can't you get a loan or credit card? Even a mainstream credit card at normal APR no promotional offers would be far far cheaper.0
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At the time of making the changes, they did offer assistance for those who'd find them difficult, including conversion to loans - chances are that particular 'offer' would no longer be in force but no harm in asking them what they can do.
The offer to convert to loans only applies if you are eligible, which I, unfortunately, was not.
Be prepared for a battle when you contact them, from remarks such as 'you got yourself into this' to smug Exec Office workers making me an offer (in September) they then retract in November when the new charges are in place.
I managed to clear my £2k overdraft and have never looked back. I put it down to once the bank has you by the short and curlys they dont care how much they shaft you, you are nothing but a sort code and account number.
My complaint is still with the FOS and has been since October. The initial response was that they agreed with BOS, I then asked for it to go to the Adjudicator who has since updated me numerous times advising they are still investigating their stance on BOS bringing in these charges before they provide a response. 8 months on I am still pushing it even though I no longer bank with them.0 -
Overdrafts have always been repayable on demand, so they could have I sister that you cleared the whole thing immediately, at any time.wizzywig27 wrote: »The offer to convert to loans only applies if you are eligible, which I, unfortunately, was not.
Be prepared for a battle when you contact them, from remarks such as 'you got yourself into this' to smug Exec Office workers making me an offer (in September) they then retract in November when the new charges are in place.
I managed to clear my £2k overdraft and have never looked back. I put it down to once the bank has you by the short and curlys they dont care how much they shaft you, you are nothing but a sort code and account number.
My complaint is still with the FOS and has been since October. The initial response was that they agreed with BOS, I then asked for it to go to the Adjudicator who has since updated me numerous times advising they are still investigating their stance on BOS bringing in these charges before they provide a response. 8 months on I am still pushing it even though I no longer bank with them.
You really can’t use an overdraft for extended borrowing, and the new charges are in part to discourage you from doing so.0 -
John_Jones wrote: »Overdrafts have always been repayable on demand, so they could have I sister that you cleared the whole thing immediately, at any time.
You really can’t use an overdraft for extended borrowing, and the new charges are in part to discourage you from doing so.
Fully appreciate that, which is why I referred to having you by the short and curlys.
The new changes are in part to force people who have been living in their overdrafts (rightly or wrongly) to pay extortionate amounts to do so. I think it equates to close to 70% APR - thats loan shark territory
The bank made these changes then let their customers drown in debt. They offered little support with one adviser not having a clue and passing you to another who also didnt have a clue. The whole thing was a farce with no compassion or understanding of the potential damage they could cause. I offered them solutions - I asked for a loan, I asked them to take the £30 a month was paying and take it off my overdraft, they didnt want to know. They didnt care what damage it caused me, as long as they were seen to be doing something.
The above is why, even though it no longer caused me hardship, I will pursue it with the FOS - I want an apology from them for their comments and lack of anything that could come close to empathy.
They are cowboys which is why I also reported them to the FCA
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wizzywig27 wrote: »Fully appreciate that, which is why I referred to having you by the short and curlys.
The new changes are in part to force people who have been living in their overdrafts (rightly or wrongly) to pay extortionate amounts to do so. I think it equates to close to 70% APR - thats loan shark territory
The bank made these changes then let their customers drown in debt. They offered little support with one adviser not having a clue and passing you to another who also didnt have a clue. The whole thing was a farce with no compassion or understanding of the potential damage they could cause. I offered them solutions - I asked for a loan, I asked them to take the £30 a month was paying and take it off my overdraft, they didnt want to know. They didnt care what damage it caused me, as long as they were seen to be doing something.
The above is why, even though it no longer caused me hardship, I will pursue it with the FOS - I want an apology from them for their comments and lack of anything that could come close to empathy.
They are cowboys which is why I also reported them to the FCA
Boo! Hiss! Evil banks!
You borrowed money from them and they charged you for it. They gave you notice of an increase in charges as required in the terms and conditions. Why do you think you deserve to be let off? Your lack of money management is the problem not the banks legitimately trading.
The FCA will not care, and the FOS will almost certainly uphold BOS's decision and reject your complaint.
You are highly unlikely to get an apology because they have nothing to apologise for.0 -
But you are not getting it, you never should have used the overdraft for long-term lending, that is not what it is for, it is a buffer designed to be used rarely, and for a short amount of time.wizzywig27 wrote: »Fully appreciate that, which is why I referred to having you by the short and curlys.
The new changes are in part to force people who have been living in their overdrafts (rightly or wrongly) to pay extortionate amounts to do so. I think it equates to close to 70% APR - thats loan shark territory
The bank made these changes then let their customers drown in debt. They offered little support with one adviser not having a clue and passing you to another who also didnt have a clue. The whole thing was a farce with no compassion or understanding of the potential damage they could cause. I offered them solutions - I asked for a loan, I asked them to take the £30 a month was paying and take it off my overdraft, they didnt want to know. They didnt care what damage it caused me, as long as they were seen to be doing something.
The above is why, even though it no longer caused me hardship, I will pursue it with the FOS - I want an apology from them for their comments and lack of anything that could come close to empathy.
They are cowboys which is why I also reported them to the FCA
Why did you choose to use it for longer term borrowing, and how can you blame the bank for the consequences? As I wrote above, they could have demanded it all be relayed immediately, would that have been better?
The FCA will not have any interest in this.0 -
ValiantSon wrote: »Boo! Hiss! Evil banks!
You borrowed money from them and they charged you for it. They gave you notice of an increase in charges as required in the terms and conditions. Why do you think you deserve to be let off? Your lack of money management is the problem not the banks legitimately trading.
The FCA will not care, and the FOS will almost certainly uphold BOS's decision and reject your complaint.
You are highly unlikely to get an apology because they have nothing to apologise for.
I don’t deserve anything, want to point me to my post where I said I was (or is this another example of putting words in people’s mouths)? My money management was fine, I had an overdraft, I used it. I wasn’t continuously in it, so no idea what you are referring to my money management again for?
The FCA may not care but they took my feedback and thanked me for it. The FOS (as I have already said) are reviewing the stance before providing a response, so yet again the info/advice you are giving out is inaccurate.
No, nothing to apologise for
you really are perfect in your own financial bubble aren’t you.
And before you start picking out my posts to comment specifically on, this could be seen a form of bullying, so please leave me be and stop commenting on my posts0
This discussion has been closed.
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