A&L outlines new overdraft structure

[EXC]

It seems to me that the current trend of re-structuring overdraft charges has little to do with the OFT test case but a move to combat the OFT's long investigation into bank charges due to finish in a couple of months.

Just when the OFT is dotting the i's and crossing the t's the banks throw in acompletely new set of numbers rendering all the calculations the OFT
has been working on since April, out of date.

http://news.bbc.co.uk/1/hi/business/6992975.stm

[Legal Beagles]

A&L outlines new overdraft structure

Alliance & Leicester became the latest bank to announce an overhaul of its charging structure this weekend, scrapping interest on its overdraft facilities altogether, and replacing them with a daily fee.


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[pam1]

Re: A&L outlines new overdraft structure

Seems a bit better than Lloyd's at least you actually know a fixed amount per day. Its not great and it still shouldn't be so high but up to Lloyd's at least you have a clearer view.

[thephoenix]

Re: A&L outlines new overdraft structure

seems to me the banks had something to hide. they wouldn't be changing the charging structure otherwise.

[Amethyst]

Re: A&L outlines new overdraft structure

As of 22 October, customers will be charged 50p a day for using an authorised overdraft, up to a limit of £5 a month, and £5 a day if they bust their limit in addition to a £25 fee.


The bank charges interest equivalent to 5.9 per cent a year on authorised overdrafts – the cheapest rate in the market. Customers who are overdrawn by a small amount will now proportionally pay much more. Someone who was just £10 overdrawn for example, would find themselves paying interest equivalent to 5 per cent a day – which, on an annualised basis, is more than 5 billion per cent.







soooooooooo I go overdrawn by £50 (paid DD) and I only have a £25 overdraft facility.

I get charged 50p a day that I'm overdrawn within my overdraft.

AND £5 a day as I go over my overdraft , PLUS 1 x £25 in that statement month ???


soooooo if I dont notice for 5 days - I get charged £25 (5 days @ £5 a day) + £2.50 + £25 = £57.50 for being over my overdraft by £25 for 5 days - .


Thats the £35 paid DD fee gone isnt it ? But also free overdrafts gone (cost to have overdraft and use it is £5 a month ).

[thephoenix]

Re: A&L outlines new overdraft structure

there just trying to cover themselves against the breach of contract angle.
Are they providing an actual service? I don't think so, acting responsibly and with due care? I don't think so. Trying to re-coup the millions they have paid back over the years? Oooohhhhhh yeaaaahhhhh !!!

makes me sick to the stomach that the FSA are quite happy to sit back and allow them to flaunt this countries very foundations on which we, the consumer, rely on for protection. then again, they are financed by the very financial organisations that continue to drive us further and further into debt.

[pam1]

Re: A&L outlines new overdraft structure

I honestly think we should have the option to choose if a Direct debit is to be paid or not, it should be refused with no charge if there is no balance available, and we can then deal with are own service providers with that problem.