The City regulator has also asked how the banks will deal with any customers who could be worse off following the changes.
"If you had an unarranged overdraft before, you saw some rates that were 10 times higher than the equivalent payday loans. They will also require providers to charge a simple annual interest rate on all overdrafts and to get rid of fixed daily or monthly fees.As the hackneyed phrase says, we change partners more often than we switch bank accounts. So, when the FCA announced what it called the biggest overhaul of overdrafts for generation, its aim was to inspire competition.
It should not be forgotten that the changes will mean more support for those facing financial trouble, and those who used to regularly bust their overdraft limit will not be hit so hard.
FCA - Fucking con artists
The 40% interest rates on agreed overdrafts is extortion. The banks were bailed out by the UK taxpayers money and should not be allowed to impose such penal interest rates just to boost their profits.
Makes you consider how and why you use an overdraft. Can you manage your finances differently and more cost efficiently. Why pay charges if you don't need to ?
Don't like it live within your means. You dont need another twattoo
if u owe a bank money they will transfer funds from your savings or other checking accts to pay themselves but when u have low funds to pay for bills they wont automatically transfer funds from your other checking accounts for payments. they will allow u to incur fees from other
40% is not business. It’s cousin Vinnie on the corner loan rates. Yea, you don’t get kneecapped if you don’t pay on time . At least not physically. But that’s the only difference.
Asked to explain?
So they force more people into debt they can take houses and claim on the default insurance the banks take out as well
Its what PARASITES DO
Isn't it because they were told by regulators thay had to do something along this line?
I get why it’s happening, it’s a good thing (yes I’m one of those awful people who has an arranged overdraft) but does it really have to be a whopping 40% How about 30% 🤔
it is because of the we can mentality.
After 50 years?
Banks have never and will never be anyone’s friend. They are a business there to make money like any other business in the world.
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Anybody know a word that rhymes with 'banker'? Trying to think of one to describe my opinion of bankers...
Some months 150$ out of my 800$ check. Why I can't afford a phone or food
In an email from AskNationwide I was told the new rates would increase my payments by approximately £15 a month, where in reality it'd increase by about £85 per month (I was almost 3k overdrawn). Not cool guys, not cool.
Why are the banks explaining it when the FCA forced the change?
I'm stuck in overdraft, and pay an average £72 a month for being so. Neverending cycle. I can't reduce on a monthly basis as any spare money goes on the fees!
A= Because people can’t send within their means. Just saying.
Good !
It's called a cartel, and evidence that competition doesn't necessarily always lead to better deals for consumers.
Bailed these bastards out now they want to hammer us
Plan your life around what you earn, then you won’t need one. Nothing clever about being in debt, then moaning about having to pay for it.
And we bailed them out 🤔
It's a lot more,I had an account 1p overdrawn and you had a fee of £5 plus a charge of £26 for a letter telling you this.
Because profits
Lloyds destroyed my mental health 5 yrs ago in regards to these overdraft rates, when i fell on really hard times due to a disability in the family. Even when i explained my situation and asked them to stop they still kept charging me. I got debt help and repayed and left.
Banks: “Explain it? Um, ok, we want money. Lots of money”.
So they should
Easy...they are money grabbing ba$$ards
The banks robbed me for £90 over 5p & I tell people turn a blind on banks when people rob them because the banks rob us in return
Glad i cannot open one.
The answer is they've used charges to hit the poorest, now they can no longer impose charges they need to keep the poor peoples money flowing into the bank somehow so that they can offer better deals to the wealthy.
To make more money off needy people! Rich praying on the poorer
Tories asking banks for the first explanation? Really , Irony !!
All this will do is force the most vulnerable into greater dept and lead then to seek loans for loan sharks. Banks have shown how irresponsible they still are.
Simple answer is to live within your means, then you won’t need one.
We have to bail them out when they screw up then to compensate for the mess we get virtually no interest on keeping our money in savings with them but they can charge extortionate rates to borrow even short term from them. People will wise up to the bank of Slumberland.
They soon scream and get bailed out when they get into trouble then rinse their customers for big fees. Dick Turpin wore a mask
Good news for credit card companies.
I can explain — greedy fookers.
Stay within your budget then there’s no problem
Classic case of the rich stealing from the poor!!!
...asked to explain...or forced to stop?...i'm sure that they could...explain...it verY...well....
The banks are going to bust here too.... Like they busted the south of Ireland out of greed!!!!!
While you're at it, ask about the insulting rates paid to savers. Some banks slashed rates again, even before the Bank of England announced a decision.
well, it's like this, now tories are in with a majority, we can squeeze the poor plebs until the pips squeak nobody gives a toss. Greed is good is back in fashion
It's because they're twats. Well, that's that sorted.
39.9% hahahahha 😂 lol That’s cute. HalifaxBank is charging 49.9% on all overdraft facilities. BrokenBritain
Another example of the one of the UK Regulators not thinking through their actions – how did they not see this coming? Well done FCA
Just switch banks
They'll screw people one way or another - they're in the business to make money and if you shut one door another will appear, and it will take a decade for Gov to wise up and close that door, etc... etc... etc... The only winners are the banks.
Why is an explaination needed? Everyone knows that the Poor are being asked to pay the banks Money for NOT HAVING MONEY in the first place. Banks make £2.5 billion stealing from the poor in Overdraft Fees.
I have no problem with that why overdraw? If its a one off ok but should be arranged. Credit card charges less interest . You should be aware the banks are greedy little B’stds they dont charge they steal.
More Bank greed. Are we surprised Probably not... 😊
Banks: .... Wtaf you don't tell us what to do you just bail us out when we screw up .. stay in your lane
Another example of how pathetic and weak the so called watchdogs are in the Uk.
It's what they charge. And you agree to the charge by using the overdraft. This culture of government and Quangos setting or questioning pricing is absurd.
It’s pretty simply. They can’t over charge the small portion of those using an overdraft unexpectedly any more so are now upping the charge to those with arranged overdrafts to cover the funding short fall.
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