SectionDJambo Posted October 22, 2009 Share Posted October 22, 2009 Just a wee bit of caution for anybody with a Bank of Scotland Current Account who is in the habit of using an overdraft facility. I got a letter today, saying that they are doing away with overdraft interest, and replacing it with a charge for using your overdraft, of ?1 for every day that you use an agreed overdraft. I have a small, ?100, overdraft limit, which I only use as a safety net if I make a mistake and forget about money coming out of my account. The current cost would be minimal. The new charge,however, from 6th December, will mean if I go into my agreed overdraft by ?1, and don't notice, I could in theory be charged ?30 in 1 month. Even deliberately using your limit to say ?100, in any given month, for 30 days, will result in 30% interest in 1 month. God knows what the APR on that is. They say it is to make things simpler for customers, so that we won't be confused. Sorry, HBOS, but I smell BS. I'm maybe blinkered from a very bad experience with them whem I was self employed and they charged me for everything they could think of, but this looks to me to be just another profiteering idea which someone has probably been well rewarded for coming up with. I feel sorry for the bank staff at the counters who have to explain this kind of stuff to customers. Link to comment Share on other sites More sharing options...
Sherlock Posted October 22, 2009 Share Posted October 22, 2009 Are you sure this applies to any agreed overdraft limit? Link to comment Share on other sites More sharing options...
Chaka Demus & pliers Posted October 22, 2009 Share Posted October 22, 2009 Are you sure this applies to any agreed overdraft limit? Yes it does. There was a thread about this the other day http://www.hmfckickback.co.uk/showthread.php?t=63530 Link to comment Share on other sites More sharing options...
berrasbraw Posted October 22, 2009 Share Posted October 22, 2009 My friend argued with the bank that bank charges are illegal and got away with it. Link to comment Share on other sites More sharing options...
SectionDJambo Posted October 22, 2009 Author Share Posted October 22, 2009 Are you sure this applies to any agreed overdraft limit? Yes-there is a ?5 charge for every day you use an unauthorised overdraft. Link to comment Share on other sites More sharing options...
Sherlock Posted October 22, 2009 Share Posted October 22, 2009 Yes it does. There was a thread about this the other day http://www.hmfckickback.co.uk/showthread.php?t=63530 I'm also with the Bank of Scotland and my first ?300 of overdraft is interest free. Link to comment Share on other sites More sharing options...
SectionDJambo Posted October 22, 2009 Author Share Posted October 22, 2009 I'm also with the Bank of Scotland and my first ?300 of overdraft is interest free. It will be worth checking that that continues. It doesn't start until 6th December. Link to comment Share on other sites More sharing options...
captain wow! Posted October 22, 2009 Share Posted October 22, 2009 My friend argued with the bank that bank charges are illegal and got away with it. used to deal with that sort of stuff everyday....charges are not illegal. if u hav never had charges back they can be forgiving and give them back as a one-off. but if u do it all the time or if a gambling problem is making u go overdrawn..nae chance! there's been a court case about charges ongoing for donkeys years which is nowhere near ending. Link to comment Share on other sites More sharing options...
Miller Jambo 60 Posted October 22, 2009 Share Posted October 22, 2009 used to deal with that sort of stuff everyday....charges are not illegal. if u hav never had charges back they can be forgiving and give them back as a one-off. but if u do it all the time or if a gambling problem is making u go overdrawn..nae chance! there's been a court case about charges ongoing for donkeys years which is nowhere near ending. Quite strange how these charges have not been outlawed by a court. Typical Britain though, letting the banks away with virtual stealing which it is or an indirect way of fraud. The man in the street would be jailed for less. But good old Britain sits back and lets them away with it. And even when their business hits the skids , the government bales them out. Shame they cant bale out all the bust businesses in the high street. And that would be the ones that are not ripping off their customers. Doug. Link to comment Share on other sites More sharing options...
davemclaren Posted October 22, 2009 Share Posted October 22, 2009 Quite strange how these charges have not been outlawed by a court.Typical Britain though, letting the banks away with virtual stealing which it is or an indirect way of fraud. The man in the street would be jailed for less. But good old Britain sits back and lets them away with it. And even when their business hits the skids , the government bales them out. Shame they cant bale out all the bust businesses in the high street. And that would be the ones that are not ripping off their customers. Doug. The reality is that in most of the rest of Europe banks have always charged for running current accounts. If people don't like the clearly stated charges on their accounts they should move banks. Link to comment Share on other sites More sharing options...
ecjambo Posted October 22, 2009 Share Posted October 22, 2009 Noticed this as well. I ran up a fairly large overdraft after being a student and then being out of work after graduating and only getting a job during the summer. Now paying it off which is going well and I should be clear by the time these charges come into affect. Will be taking it easy on the drinking for the next month to make sure I do not run into it again. Might even look around as I am getting fed up with Bank of Scotland quite frankly. Link to comment Share on other sites More sharing options...
IronJambo Posted October 22, 2009 Share Posted October 22, 2009 The reality is that in most of the rest of Europe banks have always charged for running current accounts. If people don't like the clearly stated charges on their accounts they should move banks. all fine and well but what about the people that are currently stuck knee deep in their bank of scotland overdraft? it may not be easy for them to move banks and now they're stuck with much bigger charges than before Link to comment Share on other sites More sharing options...
Beats Posted October 22, 2009 Share Posted October 22, 2009 used to deal with that sort of stuff everyday....charges are not illegal. if u hav never had charges back they can be forgiving and give them back as a one-off. but if u do it all the time or if a gambling problem is making u go overdrawn..nae chance! there's been a court case about charges ongoing for donkeys years which is nowhere near ending. Bollocks. The charges will all be refunded by the summer.The banks have 1 last appeal left which they won't win.Not after the 3 party leaders stated they should repay all charges. Quite ****ing right too.**** the banks. Link to comment Share on other sites More sharing options...
Carl Weathers Posted October 22, 2009 Share Posted October 22, 2009 Just phoned the bank and can confirm student accounts will not be affected. Whoot, whoot! Can carry on paying back ?20 a week. Link to comment Share on other sites More sharing options...
Miller Jambo 60 Posted October 22, 2009 Share Posted October 22, 2009 The reality is that in most of the rest of Europe banks have always charged for running current accounts. If people don't like the clearly stated charges on their accounts they should move banks. Fair enough Dave, but i know that even talking to HBOS workers, that the Bank of Scotland was never the same when taken over by the Halifax. I have been with them for 32 years now, but you cant even phone your local branch. The bank is a joke now. And i will be moving very soon. Doug. Link to comment Share on other sites More sharing options...
davemclaren Posted October 22, 2009 Share Posted October 22, 2009 all fine and well but what about the people that are currently stuck knee deep in their bank of scotland overdraft? it may not be easy for them to move banks and now they're stuck with much bigger charges than before They'll pay more. Link to comment Share on other sites More sharing options...
Vic Vespa Posted October 22, 2009 Share Posted October 22, 2009 This is bollox, I was offered a ?1k overdraft which I thought great, so I used it to pay something else off. Nowadays, I run my budget which goes down to -?999 or so each month, no probs, it's agreed I never go over it and it costs me about ?9 a month but now the robbers are going to shaft me silly for something I had previously agreed with them to the tune of nearly ?30 a month. Aye, it's to make it easier, crap, it's to grab more money. I'm off to the RBS and I'm not alone .......... Link to comment Share on other sites More sharing options...
Daydream Believer Posted October 23, 2009 Share Posted October 23, 2009 This is bollox, I was offered a ?1k overdraft which I thought great, so I used it to pay something else off. Nowadays, I run my budget which goes down to -?999 or so each month, no probs, it's agreed I never go over it and it costs me about ?9 a month but now the robbers are going to shaft me silly for something I had previously agreed with them to the tune of nearly ?30 a month. Aye, it's to make it easier, crap, it's to grab more money. I'm off to the RBS and I'm not alone .......... I'm in exactly the same boat as you mate. I took out a ?1000 overdraft based on calculations of what the terms & conditions were at that point. To move the goalpoasts now is out of order. I don't have a spare grand to pay it off so I'm lumbered with it. Plus if I go ?1 into my authorised overdraft I get charged ?1. A 100% charge!! Outrageous. Link to comment Share on other sites More sharing options...
Deevers Posted October 23, 2009 Share Posted October 23, 2009 Took my accounts away from the Bank of Scotland over twenty years ago after they took my mortgage payment out of my account twice sending me overdrawn - they then had the cheek to charge me for their mistake and when taken to task about it only grudgingly rectified things and offered no apology what so ever. I've been the with the Royal Bank ever since and found their service to be exceptional. Personally I wouldn't give HBOS house room. Link to comment Share on other sites More sharing options...
Daydream Believer Posted October 23, 2009 Share Posted October 23, 2009 Yeah I'm going to move soon. The only concern I have is that other accounts seem to only come with about a ?300 automatic overdraft. I need to get one with ?1000 just to stay level. Maybe I'll phone around a few. Link to comment Share on other sites More sharing options...
captain wow! Posted October 23, 2009 Share Posted October 23, 2009 Bollocks.The charges will all be refunded by the summer.The banks have 1 last appeal left which they won't win.Not after the 3 party leaders stated they should repay all charges. Quite ****ing right too.**** the banks. there isnt a date set for a decision yet. there's a chance it could continue into 2011 but again could be sorted by the middle of next year. who knows. don't know why you've got a tad riled at my post like. Link to comment Share on other sites More sharing options...
CF11JamTart Posted October 23, 2009 Share Posted October 23, 2009 Fair enough Dave, but i know that even talking to HBOS workers, that the Bank of Scotland was never the same when taken over by the Halifax.I have been with them for 32 years now, but you cant even phone your local branch. The bank is a joke now. And i will be moving very soon. Doug. Got the letter too. I was stunned, especially as it seemed to purport that this was somehow good for me. Got quite a large authorised overdraft limit, that I usually dip into in the final chunk of the month (at least). Really hacked off this this ?1 per day charge. I totaly agree too that this is changing the goalposts. Been with Bank of Scotland forever, but the customer service has got abysmal. Living in Wales and having a branch in Mount Florida that I can't even 'phone is not good. For five years, I've said that I would change banks, if only I could be bothered. This might finally motivate me. Link to comment Share on other sites More sharing options...
Daydream Believer Posted October 23, 2009 Share Posted October 23, 2009 Got my 1st account when I was about 12 (with a supersquirel bank thrown in) at the BOS in Currie. Saved my pocket money into it, and as times changed got my wages paid into a current account. Got my overdraft and my credit card from them. At one pont tried to borrow ?500 for a 2nd hand Astra. With my credit rating at the time I got told to do one. Made an appointment with the manager and told them I needed a car for the job I had been offered. No car - No job. He told me that he would give me the cash but if I didn't make the weekly repayments he would be down to see my dad!! Needless to say I made sure I paid, regular as clockwork. Changed days. Link to comment Share on other sites More sharing options...
CF11JamTart Posted October 23, 2009 Share Posted October 23, 2009 Got my 1st account when I was about 12 (with a supersquirel bank thrown in) at the BOS in Currie. Saved my pocket money into it, and as times changed got my wages paid into a current account. Got my overdraft and my credit card from them. At one pont tried to borrow ?500 for a 2nd hand Astra. With my credit rating at the time I got told to do one. Made an appointment with the manager and told them I needed a car for the job I had been offered. No car - No job. He told me that he would give me the cash but if I didn't make the weekly repayments he would be down to see my dad!! Needless to say I made sure I paid, regular as clockwork. Changed days. Little did I know that my 30-odd years of banking would be ensnared by a supersquirrel bank. Link to comment Share on other sites More sharing options...
Daydream Believer Posted October 23, 2009 Share Posted October 23, 2009 Little did I know that my 30-odd years of banking would be ensnared by a supersquirrel bank. Plastic supersquirel bank = ?1.50 A lifetime of banking/overdraft/credit card charges = Priceless:10900: Link to comment Share on other sites More sharing options...
CF11JamTart Posted October 25, 2009 Share Posted October 25, 2009 http://news.bbc.co.uk/1/hi/programmes/moneybox/8322859.stm HBOS defended the move. A spokesperson said: "We believe the introduction of this charging structure is the right thing for our current account customers". So, as a customer of 30-odd years, I should feel grateful to them... Link to comment Share on other sites More sharing options...
Miller Jambo 60 Posted October 25, 2009 Share Posted October 25, 2009 http://news.bbc.co.uk/1/hi/programmes/moneybox/8322859.stm HBOS defended the move. A spokesperson said: "We believe the introduction of this charging structure is the right thing for our current account customers". So, as a customer of 30-odd years, I should feel grateful to them... Well they would say that, robbing sharks,. Link to comment Share on other sites More sharing options...
Hungry hippo Posted October 25, 2009 Share Posted October 25, 2009 I'm in exactly the same boat as you mate. I took out a ?1000 overdraft based on calculations of what the terms & conditions were at that point. To move the goalpoasts now is out of order. I don't have a spare grand to pay it off so I'm lumbered with it. Plus if I go ?1 into my authorised overdraft I get charged ?1. A 100% charge!! Outrageous. If you go into unauthorised overdraft with the tradtional set up you will be charged about ?35 plus a similar charge for an unpaid payment. In other words ?70 which would equate to a 7,000% charge for going ?1 overdrawn if you want to compare like with like. Plus you would have the issue of the payment going unpaid also. I definitely prefer the new way although you will obviously be worse off if you were overdrawn for most of the month but I will use it to my advantage by avoiding that. Link to comment Share on other sites More sharing options...
Dazo Posted October 25, 2009 Share Posted October 25, 2009 If you go into unauthorised overdraft with the tradtional set up you will be charged about ?35 plus a similar charge for an unpaid payment. In other words ?70 which would equate to a 7,000% charge for going ?1 overdrawn if you want to compare like with like. Plus you would have the issue of the payment going unpaid also. I definitely prefer the new way although you will obviously be worse off if you were overdrawn for most of the month but I will use it to my advantage by avoiding that. It is ?5 a day for unauthorised overdrafts. Link to comment Share on other sites More sharing options...
kjc2006 Posted October 25, 2009 Share Posted October 25, 2009 Alliance & Leicester charge 50p a day on authourised overdrafts although they do limit that to a total of ?5 of charges in any given month. Link to comment Share on other sites More sharing options...
Peebo Posted October 25, 2009 Share Posted October 25, 2009 .....Even deliberately using your limit to say ?100, in any given month, for 30 days, will result in 30% interest in 1 month. God knows what the APR on that is.... Presumably 365%... Link to comment Share on other sites More sharing options...
Hungry hippo Posted October 25, 2009 Share Posted October 25, 2009 It is ?5 a day for unauthorised overdrafts. Yeah, you're right mate. Link to comment Share on other sites More sharing options...
Moriarty Posted October 25, 2009 Share Posted October 25, 2009 Just phoned the bank and can confirm student accounts will not be affected. Whoot, whoot! Can carry on paying back ?20 a week. nice one! I have a ?1000 overdraft that I won't be going over unless something really untoward happens. So should be able to pay the overdraft back before I stop being student next year. Link to comment Share on other sites More sharing options...
mulleted_jambo Posted October 26, 2009 Share Posted October 26, 2009 This is bollox, I was offered a ?1k overdraft which I thought great, so I used it to pay something else off. Nowadays, I run my budget which goes down to -?999 or so each month, no probs, it's agreed I never go over it and it costs me about ?9 a month but now the robbers are going to shaft me silly for something I had previously agreed with them to the tune of nearly ?30 a month. Aye, it's to make it easier, crap, it's to grab more money. I'm off to the RBS and I'm not alone .......... Pretty much the same here got about ?1,000 agreed overdraft and will be moving it to RBS. Used to like BOS but got a second account with RBS and they seem much better. Link to comment Share on other sites More sharing options...
Gavsy Van Gaverson Posted October 26, 2009 Share Posted October 26, 2009 As daft as it may seem, I think that HBOS are doing this in order to intentionally LOSE customers. This will help the new Lloyds Banking Group keep the EU of their backs with regards the size of the bank. Link to comment Share on other sites More sharing options...
Chaka Demus & pliers Posted October 26, 2009 Share Posted October 26, 2009 Some useful info on here about what you can do. http://www.moneysavingexpert.com/news/banking/2009/10/how-to-beat-halifaxs-overdraft-chagres I didn't realise that you could do a balance transfer from a bank account with some credit cards. I have a 0% balance transfer offer on a card with nothing on it so will be moving the overdraft I have onto that for now and closing my HBOS account. Link to comment Share on other sites More sharing options...
Gershwin Posted October 26, 2009 Share Posted October 26, 2009 Saw an ad for Quick Quid on the TV - they were offering loans with an APR of 2956%. Nothing to do with this thread, but I felt I had to share this observation. Is anyone seriously stupid enough to sign up for this deal? Link to comment Share on other sites More sharing options...
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