I dunno - I didn't know it was possible to go overdrawn with a debit card... I thought that was the whole point of them over a credit card.. (ie you can't get into debt!)

colin79666 said:

I know this is going to be controversial and let me start by making it clear that this is not a personal attack on any individual. Now the disclaimer is over...

I just don't get what the whole fuss about bank charges are. I mean if you go into an overdraft ITS NOT YOUR MONEY your spending. So why not have to pay interest/charge?

As someone who budgets carefully, has modest savings and never goes lets the account balance drop below zero it really annoys me to think that the banks are going to charge for current accounts and lower interest on savings because they cannot make money from charging people who go into unauthorised overdrafts/write bouncing cheques/fail to pay off loans.

Clearly we are all human and occasionally make mistakes/accidentally end up in an overdraft situation. Fine, but for those who repeatedly fail to organise themselves and get hit it charges I have no sympathy.

Click to expand...

While I agree somewhat, I do feel that the prices they charge are OTT, I went 5p overdrawn when I didn't have a overdraft, and they wanted me to pay £27.

colin79666 said:

I just don't get what the whole fuss about bank charges are. I mean if you go into an overdraft ITS NOT YOUR MONEY your spending. So why not have to pay interest/charge?


Clearly we are all human and occasionally make mistakes/accidentally end up in an overdraft situation. Fine, but for those who repeatedly fail to organise themselves and get hit it charges I have no sympathy.

Click to expand...

before this whole thing i'd never in the 5 years of having my account went into my overdraft as i'm always careful, if the bank hadn't told me in the first place it wouldn't go overdrawn if i used in a shop and didn't have the funds, it wouldn't go through, none of this would have came about.

like Ben, that's what i had always thought the point of a debit card was, when i confirmed this with some tool in the branch i thought i was fine.

is it just me or is the bank at fault?

fair enough if i'd have just assumed it wouldn't go through but i actually took the time to ask

colin79666 said:

lower interest on savings

Click to expand...

That's nothing to do with charges. Savings rates are directly linked to the bank of England base rate which is on its a** thanks to the fantastic government overspending and banking fiasco's over the last 3-5years.

For the most point I agree with you but as ben said they SHOULD NOT ALLOW any transaction out of your account using a debit card if the funds aren't there. They let you do this because its a good money maker!

Only thing they can't stop it on is like I say on the Pay @ Pumps as the amount is charged after fill up and after the card is means tested (£5 holding I believe), in which case the banks are more than fair to charge for this kind of use.

colin79666 said:

I know this is going to be controversial and let me start by making it clear that this is not a personal attack on any individual. Now the disclaimer is over...

I just don't get what the whole fuss about bank charges are. I mean if you go into an overdraft ITS NOT YOUR MONEY your spending. So why not have to pay interest/charge?

As someone who budgets carefully, has modest savings and never goes lets the account balance drop below zero it really annoys me to think that the banks are going to charge for current accounts and lower interest on savings because they cannot make money from charging people who go into unauthorised overdrafts/write bouncing cheques/fail to pay off loans.

Clearly we are all human and occasionally make mistakes/accidentally end up in an overdraft situation. Fine, but for those who repeatedly fail to organise themselves and get hit it charges I have no sympathy.

Click to expand...

I agree
however i do have an issue where a DD fails through no funds(fair enough,account holders fault)
but then the banks start whacking on massive charges on the failed DD (so they didnt pay anything out),unauthorised OD
then if you dont have money to cover that then it can get silly
i got caught out recently once when i was under £1 short for a DD (i thought it was coming out the next day so hadnt bothered to transfer money in
and ended up getting a charge from the bank and the company!
so my £1 cost me over £60

ChrisUK said:

That's nothing to do with charges. Savings rates are directly linked to the bank of England base rate which is on its a** thanks to the fantastic government overspending and banking fiasco's over the last 3-5years.

Click to expand...

It's a bit of both. The banks want to maintain the profit margins. If they can't hit you with charges then the other ways to keep the profit going are charging for current account and widening the gap between savings and borrowing rates.

I agree that it is not right to be charged huge sums if you go £1 overdrawn as a rare thing. My problem is with those that somehow think the banks are there to provide them with some sort of free/easy money and are up in arms when the banks charge them for the service. Banks are a business like any other - to make profit for shareholders.

I also agree that you should have to explicitly agree to have your debit card be allowed to create an overdraft. On the other hand it is all there in the terms and conditions which you signed up to abide by. A debit card takes the money out (more or less) instantly. A credit card is effectively a pre agreed short term loan. Both will accept payments to be made which breach limits (overdraft in case of a debit card, credit limit in case of a credit card) which will incur fines if not previously agreed between you and the bank.

before BOS joined halifax
every account had a £10 OD limit as standard
great idea
saved any issues over silly little amounts of money

AlexR said:

got a letter the other day saying i'm getting charged another £25, i can't understand why even after speaking to them (mainly due to me being suuupperr angry) if i don't put it in by the 9th i'll get charged that and another £25 and the saga will begin.

i'd love to just pay in the £25 so nothing else comes out and open a small claims court thing online, i've never done anything like this before so i'd love some advice/help, mainly if it's actually worth it.



cheers for reading!!

Click to expand...

Sorry. little bit dopey due to my morphine script...let me get this straight..you had the original O/D fee refunded, but have since incurred another charge of £25, due to the time you were overdrawn? or have you had other transactions through the account that have taken you further into an unauthorised O/D?

Is your account currently sitting in the red?, the first thing to do if it is is bring the account back in credit, even if the o/D balamce is due to charges that have already been debited, If you do not have an agreed overdraft with the bank, then you should not go overdrawn,unfortunately you will get charged, and will incur debit interest for every day that your account is in debit

what are the total charges now due on the account? as they should never amount to more than the total O/D balance incurred as that is in breach of the "fair fees policy" that high street banks should now adhere too.

With regard to the card not being declined even though it took you over your limit. most banks have an *authorised Limit" allocated to customers on individual merit...I.E an amount they will let you go overdrawn by before they start declining transactions(this is not free of charge) so that is probably why your card still worked.

On the other hand if you had drawn the cash from an ATM, it should come up with a message aling the lines of" this transaction will exeed your o/d limit and may incurr a charge, do you wish to proceed"?

just another thing, sign up for txt message/internet banking, and keep track of your spending, no more nasty surprises then.

so yes in a long winded way, my question is, what are these new charges for?

Done the letter yet alex?

J

custard said:

before BOS joined halifax
every account had a £10 OD limit as standard
great idea
saved any issues over silly little amounts of money

Click to expand...

That is logical

email never came through Jonathon, don't know what happened there.

i'll have a proper look through the charges when i've had a sleep, just battled through 18 hours of night shift and college.

Adrian Bravo said:

That is logical

Click to expand...

yup,sadly it was removed when they joined Halifax
i never asked but i doubt they allow an arranged OD as low as £10
i have no interest in larger amounts

custard said:

yup,sadly it was removed when they joined Halifax
i never asked but i doubt they allow an arranged OD as low as £10
i have no interest in larger amounts

Click to expand...

£50 seems to be the smallest with Halifax at the moment.

im with halifax.... and get there £250 charge free overdraft.... anywhere over that upto £500 i pay £5 a day.... i get my £5 a month from them payment as i put in just over a £1000 a month... and for the £12.50 charge i get card protection... worldwide travel insurance... breakdown cover for my own car and if im in a relatives car... phone and personal electronic equipment... and a one to one advisor

Technically your suppose to pay income tax on that £5 payment .


Really don't think the tax man really gives two s***s though .

ChrisUK said:

Technically your suppose to pay income tax on that £5 payment .


Really don't think the tax man really gives two s***s though .

Click to expand...

You would think that wouldnt ypu? They are chasing every penny possible atm.

Thats why us IP's are very busy atm

ChrisUK said:

Technically your suppose to pay income tax on that £5 payment ..

Click to expand...

You do pay income tax on it though - the GROSS incentive is £6.25 and they take off 20% to leave you £5 in your account.

If you are under self-assessment, you will have to declare it - and will have to find more tax to pay if you are a higher rate tax payer.

If you don't pay income tax, then you can reclaim it.

By the way, I have a £5,000 overdraft facility with Barclays, with an extra £1,000 in reserve lol - not using it at the moment, but handy to have, and the interest is pretty good as a Premier customer

Oh well I knew you had to pay tax on it somewhere, I can remember catching part of the small print on the advert.

All charges refunded ( 6 ), multiple future charges cancelled. Money will be in my account tomorrow, all will be transfered into my other account and then ill cancel the account.

What a result lots of money to go towards my car

Hows it going alex?

herpsuk said:

All charges refunded ( 6 ), multiple future charges cancelled. Money will be in my account tomorrow, all will be transfered into my other account and then ill cancel the account.

What a result lots of money to go towards my car

Hows it going alex?

Click to expand...

RESULT nice one!

i WILL do it today, just got robbed buying a car so my heads done in. i'll give it a shot though!