Have you had big overdraft problems for a long period? You can make an affordability complaint and ask for a refund of overdraft charges if: your overdraft limit was set too high at the start or increased to a level you are unable to clear; or your overdraft usage showed you were in long-term financial distress. For example, being in the overdraft all the time, or using an unauthorised … [Read more...]
Lloyds and Halifax to charge up to 49.9% interest on overdrafts
The Lloyds Banking Group - Lloyds, Halifax and Bank of Scotland - are changing overdraft charges for customers from August. Some are increasing, some are reducing. The new 19.9% and 29.9% charges are lower than most major banks. But the new 49.9% charge will be the highest overdraft rate charged by a high street bank. The current charges This is the first change since 2020. Before that Lloyds … [Read more...]
Is Santander routinely rejecting overdraft complaints?
A reader used my overdraft affordability complaint template letter to ask Santander for a refund: Santander are refunding 5, nearly 6, years worth of fees and interest and 8%. It's over £3.5k... amazing! This pays off my overdraft completely with spare and the overdraft will be removed. That was a "full refund" - the maximum she could have got from the Financial Ombudsman (FOS). She was very … [Read more...]
4 reasons why you need a new bank account
Everyone needs a bank account that they can rely on, one that doesn't cause more trouble than it solves. So here are four reasons why people with financial problems should get a new bank account. If you have a lot of problem debt, you may think you can't change bank accounts because no-one else would let you have a current account. But the new Basic Bank Accounts that were introduced in 2016 … [Read more...]
Overdrafts are often hard to clear – 5 ways to do it
Do you worry you will always be stuck in your overdraft? You aren't alone. Overdrafts can be the hardest sort of debt to pay off. Even authorised overdrafts aren't cheap, once you stop being a student. So what can you do that will work? Very hard to escape from The hamster on this wheel is enjoying going round and round and never getting anywhere. For many people, their overdraft feels … [Read more...]
Lloyds & Halifax overdraft fees higher if your credit record is poor
In July 2020, Lloyds, Halifax and Bank of Scotland (BoS) increased their overdraft charges and a month later people are starting to see the full cost on their monthly statements. This is the fourth change to the banks' overdraft charges since 2017. The new fees are higher for customers with a bad credit rating. This is unfair in several ways. So what can you do if you can't afford these … [Read more...]
New “simpler” overdraft charges in 2020 – the gainers and losers
In 2019, the bank regulator, the FCA, announced new rules about overdraft charges. It called these: the biggest shake-up to the overdraft market for a generation. Banks had to change their overdraft charging before April 2020. In January 2020, the last of the banks announced how they were changing their rates. In 2020 the FCA admitted that about 8 million people will be paying more under the … [Read more...]