Goodbye fixed daily or monthly fees for overdrafts

Money, investing, mutuals etc
William Joseph1
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Goodbye fixed daily or monthly fees for overdrafts

Post by William Joseph1 » Fri Jun 07, 2019 9:52 am

Bank overdraft fees are to undergo a major shake-up, which the UK financial regulator is calling the biggest overhaul for a generation.

Banks and building societies will no longer be allowed to charge fixed daily or monthly fees for overdrafts.
https://www.bbc.co.uk/news/business-48553193
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by kevinchess1 » Fri Jun 07, 2019 10:19 am

Swings and roundabouts
They will make their money elsewhere
Cutting savings rate etc
Politically incorrect since 69

blythburgh
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by blythburgh » Fri Jun 07, 2019 10:21 am

kevinchess1 wrote:
Fri Jun 07, 2019 10:19 am
Swings and roundabouts
They will make their money elsewhere
Cutting savings rate etc
Or worse, start charging for current accounts
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by William Joseph1 » Fri Jun 07, 2019 10:29 am

blythburgh wrote:
Fri Jun 07, 2019 10:21 am
kevinchess1 wrote:
Fri Jun 07, 2019 10:19 am
Swings and roundabouts
They will make their money elsewhere
Cutting savings rate etc
Or worse, start charging for current accounts
I could be wrong, But I think the UK is unique in Europe for not charging for Current accounts. It could be considered that we have been lucky up until now.
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by blythburgh » Fri Jun 07, 2019 10:32 am

Lucky but it will hit the poorest hardest and some might decide not to have a bank account after all.
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by AAAlphaThunder » Fri Jun 07, 2019 10:44 am

Took a long time but got there in the end.

Win-win.
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by William Joseph1 » Fri Jun 07, 2019 10:50 am

blythburgh wrote:
Fri Jun 07, 2019 10:32 am
Lucky but it will hit the poorest hardest and some might decide not to have a bank account after all.
At the moment it is a requirement that all banks provide a "Basic bank account" without fees. The regulations will have to change before charging becomes universal.
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by expressman33 » Fri Jun 07, 2019 3:42 pm

Banks and building societies will be required to charge a simple annual interest rate on all overdrafts, and overdraft advertisements will need to come with that rate clearly displayed, to help consumers to compare various products.
so this interest rate will probably be quite high to enable the banks to make a profit
Banks will still be able to refuse to make a payment if a customer does not have the funds to cover it, but any resulting fee for the customer must reflect the cost to the bank
They could charge an "admin" fee to send you a letter
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by expressman33 » Fri Jun 07, 2019 3:47 pm

The easy way round this is "Don't go overdrawn"
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by blythburgh » Sat Jun 08, 2019 8:20 am

expressman33 wrote:
Fri Jun 07, 2019 3:47 pm
The easy way round this is "Don't go overdrawn"
Easier said than done for some. One person interviewed said his flatmate lost his job and so he had to pay far more towards shared expenses. Ended up overdrawn and the fees swallowed up so much of his wages that he was trapped.

Zero hours contract meaning you do not always get a full weeks work but the rent has to be paid, electricity on a pay meter has to be paid. Then the car you need to get to work breaks down.

See how easy it is to go overdrawn.

But admittedly some do go overdrawn, have huge credit card debts due to having to have the latest Kanye West designed trainers or something else not necessary or even needed.
Keep smiling because the light at the end of someone's tunnel may be you, Ron Cheneler

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