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As required by the OFT the banks have now all published their 6 charging scenarios for unplanned overdrafts. The idea being that you can more easily compare unauthorised overdraft charges by way of a range of standardized examples.
I'm a bit disappointed that the OFT have not issued a press release announcing the publication of the scenarios (which means it gets little or no media coverage) as the whole idea of this was to make consumers aware of the true costs of unauthorised overdrafts bank by bank so that they can make an informed decision in choosing the best account.
Although Beagles didn't get a seat on the working party that formulated the scenarios, I understand that the British Bankers Association successfully persuaded the OFT not include ''more extreme'' examples.
http://www.nationwide.co.uk/current_account/oft.htm
http://www.bank.barclays.co.uk/Helpsupport/Overdraftsandbankcharges/P1242572224833
http://www.hsbc.co.uk/1/2/overdraftexamples;jsessionid=0000CQCwq4fUp0MxZZlHq Iu3oZi:14et5lljg
http://www.rbs.co.uk/personal/current-accounts/g4/charges.ashx#chargingScenarios
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&can al=CABBEYCOM&cid=1237870351769&leng=en_GB&pagename =Abbeycom%2FPage%2FWC_ACOM_TemplateT2
http://cbonline.co.uk/personal/current-accounts/interest-rates-and-charges/unplanned-borrowing-scenarios/
http://www.lloydstsb.com/current_accounts/overdraft_changes.asp
Of course most banks operate several different current accounts and charges vary from account to account but using the figures for what I believe is the most common non fee paying account for each bank I've tabled the comparisons below. On some scenarios for certain accounts there are caveats to the charges depending on the amount overdrawn etc which I have not included.
The 6 scenarios are:
1. We refuse a payment from your account because there is not enough money in your account.
2. A payment from your account takes you into an unauthorised overdraft by less than £10.
3. A payment from your account takes you into an unauthorised overdraft and you make another payment from the account while you are overdrawn. You are overdrawn for two days in a row during the month.
4. A payment from your account takes you into an unauthorised overdraft, and you make nine more payments from the account while you are overdrawn. You are overdrawn for 10 days in a row during the month.
5. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into an unauthorised overdraft. On each of these occasions you are overdrawn for three days.
6. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.
Scenario ---------1---------2---------3---------4----------5----------6
Nationwide------£30-------£0-------£20-------£20-------£20-------£20
Barclays----------£8--------£22------£22-------£44-------£88-------£66
HSBC--------------£0--------£0-------£25-------£125------£50-------£150
RBS/Natwest----£5--------£20------£50-------£110-------£65------£110
Santander------ £5to£35--£60------£95-------£150------£150----- £150
Clydesdale------£35-------£25------£75-------£175------£100------£225
Lloyds----------- £20-------£21------£50-------£210------£186------£190
I'm a bit disappointed that the OFT have not issued a press release announcing the publication of the scenarios (which means it gets little or no media coverage) as the whole idea of this was to make consumers aware of the true costs of unauthorised overdrafts bank by bank so that they can make an informed decision in choosing the best account.
Although Beagles didn't get a seat on the working party that formulated the scenarios, I understand that the British Bankers Association successfully persuaded the OFT not include ''more extreme'' examples.
http://www.nationwide.co.uk/current_account/oft.htm
http://www.bank.barclays.co.uk/Helpsupport/Overdraftsandbankcharges/P1242572224833
http://www.hsbc.co.uk/1/2/overdraftexamples;jsessionid=0000CQCwq4fUp0MxZZlHq Iu3oZi:14et5lljg
http://www.rbs.co.uk/personal/current-accounts/g4/charges.ashx#chargingScenarios
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&can al=CABBEYCOM&cid=1237870351769&leng=en_GB&pagename =Abbeycom%2FPage%2FWC_ACOM_TemplateT2
http://cbonline.co.uk/personal/current-accounts/interest-rates-and-charges/unplanned-borrowing-scenarios/
http://www.lloydstsb.com/current_accounts/overdraft_changes.asp
Of course most banks operate several different current accounts and charges vary from account to account but using the figures for what I believe is the most common non fee paying account for each bank I've tabled the comparisons below. On some scenarios for certain accounts there are caveats to the charges depending on the amount overdrawn etc which I have not included.
The 6 scenarios are:
1. We refuse a payment from your account because there is not enough money in your account.
2. A payment from your account takes you into an unauthorised overdraft by less than £10.
3. A payment from your account takes you into an unauthorised overdraft and you make another payment from the account while you are overdrawn. You are overdrawn for two days in a row during the month.
4. A payment from your account takes you into an unauthorised overdraft, and you make nine more payments from the account while you are overdrawn. You are overdrawn for 10 days in a row during the month.
5. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into an unauthorised overdraft. On each of these occasions you are overdrawn for three days.
6. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.
Scenario ---------1---------2---------3---------4----------5----------6
Nationwide------£30-------£0-------£20-------£20-------£20-------£20
Barclays----------£8--------£22------£22-------£44-------£88-------£66
HSBC--------------£0--------£0-------£25-------£125------£50-------£150
RBS/Natwest----£5--------£20------£50-------£110-------£65------£110
Santander------ £5to£35--£60------£95-------£150------£150----- £150
Clydesdale------£35-------£25------£75-------£175------£100------£225
Lloyds----------- £20-------£21------£50-------£210------£186------£190
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