Banks

My daughter banks with a large high street institution, who today informed her by way of a letter that, as from November 2012, they will be charging £1.00 per day for the use of an AUTHORIZED overdraft, so for example, say you spend the year overdrawn legitimately to the tune of £50.00 you will pay £365.00 for the privillage.
I have neither the time or inclination to work out what that represents as an APR%, but it must rank along side those dodgy Cash Till Payday merchants, I guess they are the first to start raking back the cash claimed by PPI rebate seekers.

Re: Banks

That's a bit over the top surely? Aren't the banks making enough money out of us already without that.

Re: Banks

mazzie, I think it is probably the PPI cash cow that's been over milked.

Re: Banks

Seems mercenary to me ... afterall they make enough from standard bank account charges and presumably are charging so many percent above base rate on the authorized overdraft in the first place.

Re: Banks

I think those charges must be about the norm nowadays Spitfire and I don't intend to have to pay any bank charges at all if I can avoid it, so my current account is kept quite simple and I really keep my eye on it. It's a no charges account that will pay me £5.00 a month as long as I am in credit and pay a minimum amount of £1,000 in each month. It used to come with a £1,000 interest free authorised overdraft but has also fairly recently changed and is now £1.00 a day up to £2,500 - There is no way I will pay that. If they take the £5.00 a month payment to me away as well, I'll be looking elsewhere. I hear the Co-operative Bank is quite good.

Re: Banks

Hi Aerolor, my daughter intends to change Banks, I have also heard that the Co-Op, is the most ethical of the bunch, and has the highest customer service satisfaction record, so i will suggest them to her.

Re: Banks

Take your money out and move to the cooperation bank.

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I believe the Co-operative Bank in the process of taking over Lloyds TSB and Cheltenham and Gloucester?

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Are they? I didn't know that I will have to look into it. I wonder if this is a good thing or bad. As the cooperative seem to have a more ethical approach to banking,. I wonder if they are bringing this ethical approach to the mainstream banking or become like the rest ruthless bankers?

Re: Banks

I understand that the Co-operative Bank does have ethical policies regarding their banking operations - how important or how much affect these policies actually have, I don't know. I also don't know whether the incorporation of Lloyds TSB and Cheltenham & Gloucester will affect their future banking policies. Like everything else, they have to compete in a marketplace and if they are not competitive then it seems logical that ethical policies will take a back seat in favour of success.
I like the idea and principles of the co-ops., but I am not sure how far the co-operative principles extend into the banking world.