The banks are still going to get their pound of flesh.
Discussion
I have had arranged overdrafts for years, because I'm useless with my finances, to avoid charges and all that guff.
So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
But you do realise it costs them to do the overdraft?
To give you another example. Most of the time my current account is well within the black. I also have a decent sized savings account with said bank.
On the two occasions I have gone overdrawn, once by £100, and once by £1300, They have waived the penalty after I rang them. Obviously I reckon they think they make so much money out of me normally that they will not cut their nose off and risk me going elsewhere. Swings and roundabouts. I bet the banks have their own profit and loss account when people ring them telling them how much they've made off you this year, and therefore whether its worth waiving a fee or not. Either that, or I've just been lucky enough to ring the nice people.
To give you another example. Most of the time my current account is well within the black. I also have a decent sized savings account with said bank.
On the two occasions I have gone overdrawn, once by £100, and once by £1300, They have waived the penalty after I rang them. Obviously I reckon they think they make so much money out of me normally that they will not cut their nose off and risk me going elsewhere. Swings and roundabouts. I bet the banks have their own profit and loss account when people ring them telling them how much they've made off you this year, and therefore whether its worth waiving a fee or not. Either that, or I've just been lucky enough to ring the nice people.
King Herald said:
I have had arranged overdrafts for years, because I'm useless with my finances, to avoid charges and all that guff.
So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
Yes I had the same letter a few months ago, they told me exactly the same, my overdraft facility was coming to an end, they had reviewed it, decided I didnt need a higher limit and were charging me £25 for this privelege.So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
Woolwich (=Barclays) wrote to me to tell my my Mortgage Current Account overdraft was being cut from £10k to £100 a few months back, UNLESS I wrote back to them to say I needed it.
So I duly contacted them and told them I wanted it, and then two months later the timing of ins and outs went wrong and I went overdrawn by a few £100. But they'd not left my o/d alone, so a (Woolwich) mortgage payment bounced. I got charged £31.50 on my CA for the failed payment and £27.50 on my Mortgage for the late receipt!!!
They refunded it all, but it took 3 phone calls to sort it and a lot of people telling me it 'wasn't their error' ("they" as in the mortgage dep't, or the Customer Service dep't, or any other dep't who don't actually think of themselves as a holistic whole and a single entity from the customer's perspective). I'm very seriously considering going to First Direct...
Edit: Have you SEEN the size of mortgage arrangement fees now?!? Even if you're staying with the same bank! THAT is money-for-nothing.
So I duly contacted them and told them I wanted it, and then two months later the timing of ins and outs went wrong and I went overdrawn by a few £100. But they'd not left my o/d alone, so a (Woolwich) mortgage payment bounced. I got charged £31.50 on my CA for the failed payment and £27.50 on my Mortgage for the late receipt!!!
They refunded it all, but it took 3 phone calls to sort it and a lot of people telling me it 'wasn't their error' ("they" as in the mortgage dep't, or the Customer Service dep't, or any other dep't who don't actually think of themselves as a holistic whole and a single entity from the customer's perspective). I'm very seriously considering going to First Direct...
Edit: Have you SEEN the size of mortgage arrangement fees now?!? Even if you're staying with the same bank! THAT is money-for-nothing.
Edited by havoc on Wednesday 1st October 09:09
Marf said:
King Herald said:
I have had arranged overdrafts for years, because I'm useless with my finances, to avoid charges and all that guff.
So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
Yes I had the same letter a few months ago, they told me exactly the same, my overdraft facility was coming to an end, they had reviewed it, decided I didnt need a higher limit and were charging me £25 for this privelege.So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
King Herald said:
Marf said:
King Herald said:
I have had arranged overdrafts for years, because I'm useless with my finances, to avoid charges and all that guff.
So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
Yes I had the same letter a few months ago, they told me exactly the same, my overdraft facility was coming to an end, they had reviewed it, decided I didnt need a higher limit and were charging me £25 for this privelege.So, today, letter from HSBC, telling me my overdraft facility is drawing to an end, that they will continue it for another year, BUT, the new 'free overdraft facility' will have a £25 arrangement fee.
I called the bank, they explained it was because I went a couple of quid over six months ago. Okay, fair enough, my fault, and I discovered my 'bills account' overdraft is only for £200. So, I best raise it a bit to save the same happening again. "That'll be another £25, on top of the £25 'arrangement fee' sir".
Looks like all the low lifes scrabbling thousands back for their own cock ups has forced the bank to use different methods to make their money. As many experts here predicted.
The lady on the phone said I was going to go over my OD and I would be charged £25 if that happened, so would I like to up my OD limit temporarily, but if I did that I would be charged a £25 arrangement fee. Zero sum game or what
She failed to see the pointlessness of the question.
Edited by Marf on Wednesday 1st October 09:23
Marf said:
The lady on the phone said I was going to go over my OD and I would be charged £25 if that happened, so would I like to up my OD limit temporarily, but if I did that I would be charged a £25 arrangement fee. Zero sum game or what
She failed to see the pointlessness of the question.
That sounds remarkably similar to the conversation I had this morning, with a Scottish call centre chappie, whose accent was as intelligible as the usual Indian call centre. She failed to see the pointlessness of the question.
Me: "So, I have to pay £25 for my overdraft arrangement next month, plus another £25 to increase the arrangement I am paying £25 to arrange?"
Angus: "Yes, that's right".
Maybe I can simply cancel the overdraft, then later on arrange a new one at a higher rate, just to jewbag them out of £25?
Fittster said:
Why do people think they should have a free overdraft?
Because the banks don't pay us for leaving our money in credit in the current account?!? And besides, the o/d ISN'T free - you pay interest on it. The 'arrangement fee' dates back to the times when bank clerks actually had to DO WORK to permit you to have an overdraft. Nowadays it takes someone at a computer terminal about 10 seconds...
havoc said:
Fittster said:
Why do people think they should have a free overdraft?
Because the banks don't pay us for leaving our money in credit in the current account?!? .
When overdrawn/bounced chq/Switch fees got changed down from £35 to £12 by the FSA it started the beginning of the end of free banking the UK.
Look at any other country and you pay monthly for a current account - we pay nothing, thats not fair but Im not going to enjoy an additional fee.
Credit card limits are being reduced all the time, likewise overdraft limits & those who they allow it to have to have better credit limits.
Mortgage Broker fees are really ramping up - Its so high now and the benefit is only 0.1% to get the fixed rate that Im sticking with the SVR until a point in the future that it gets cheaper. Note 0.1% interest per £100k mortgage debt is £100 per annum ...the booking fee offered for the fixed rate was £2500, so I could go for 25years before its more economical to be on a fixed rate. Only when the gap increases between SVR & Fixed rates will it start to make sense.
Look at any other country and you pay monthly for a current account - we pay nothing, thats not fair but Im not going to enjoy an additional fee.
Credit card limits are being reduced all the time, likewise overdraft limits & those who they allow it to have to have better credit limits.
Mortgage Broker fees are really ramping up - Its so high now and the benefit is only 0.1% to get the fixed rate that Im sticking with the SVR until a point in the future that it gets cheaper. Note 0.1% interest per £100k mortgage debt is £100 per annum ...the booking fee offered for the fixed rate was £2500, so I could go for 25years before its more economical to be on a fixed rate. Only when the gap increases between SVR & Fixed rates will it start to make sense.
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