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Greedy, grasping grabby banks

(14 Posts)
Chewbacca Thu 24-Sep-20 13:21:13

I'm fortunate enough not to have, or need, a bank overdraft but it's obvious why many other households will have or need one now. Unemployment, furlough scheme about to end, laying off of staff and reduced hours are affecting millions of people across the country due to COVID. So I was absolutely astonished, and disgusted, to receive a letter from my bank today to advise that
as from 5th August 2020, Interest Rates for an arranged, or unarranged overdraft will increase from 18.9% to 35.9%.

To almost double the interest rate at this particular time is disgraceful and directly affects those who, mainly due to no fault of their own, are already struggling to make ends meet. I've been with my bank for 50 years but am seriously considering leaving in protest. Has anyone else's bank done this? angry

Oopsadaisy4 Thu 24-Sep-20 13:24:57

Our bank sent us a letter about a month ago with the same Interest Rate, so I assume that they will all follow suit.

Froglady Thu 24-Sep-20 13:29:31

That's just plain disgusting, cashing in on people who are desperate at this time and need help; does that mean that more people will end up going to these high street money lenders?

Smileless2012 Thu 24-Sep-20 13:36:23

Good grief that's appallingshocksurely it's profiteering!!!

LauraNorder Thu 24-Sep-20 13:47:13

Like you Chewbacca we are lucky enough to no longer need to use an overdraft facility but feel sad and disgusted that, at a time of national crisis, banks will do that to the most vulnerable people when we are all supposed to be pulling together.

Davidhs Thu 24-Sep-20 15:47:26

All banks are going to look after their own interests first, they are all the same, if you are in some kind of difficulty they will make it worse. They don’t care if you change banks, they all operate to the same rules.

The answer is don’t let them get into that position, don’t buy that new car, house, kitchen, sofa or whatever, very few need to borrow, a great many borrow to buy stuff they can do without.

paddyanne Thu 24-Sep-20 15:56:26

At least we know poor auld Lizzie will be OK ,she's being compensated by the taxpayer for the drop in price of her property portfolio .....oh to be so lucky...No overdrafts or foodbanks for her ,wonder if they all claimed furlough payments? Not that it would surprise me ,but didn't her financial adviser warn her that investments can go DOWN as well as up ...our certainly did !!

Oopsadaisy4 Thu 24-Sep-20 16:37:37

FHS paddyanne what has it got to do with the RF?
Same old same old.

craftyone Thu 24-Sep-20 16:46:51

interest on savings is something of the order of 0.01%. That extra money from overdraughts is to cushion the banks from defaulters and there will be many

Chewbacca Thu 24-Sep-20 18:27:18

Sorry paddyann, I'm not sure what the correlation is between the royal family and their property portfolio and bank overdraft % rates?

PinkCakes Thu 24-Sep-20 18:33:07

Are all banks increasing the interest rate for overdrafts? I'm lucky to not need to use one, but I don't think my bank (First Direct)is the same.

TheFrugalPiggy Thu 24-Sep-20 18:37:26

DH and I moan every time a bank advert comes on the telly. The way they tell us they're there for "us", for "the journey". I really can't abide banks.

Calendargirl Thu 24-Sep-20 19:01:31


Are all banks increasing the interest rate for overdrafts? I'm lucky to not need to use one, but I don't think my bank (First Direct)is the same.

I think Martin Lewis was warning us recently that all banks will be increasing their overdraft charges.

Can’t remember why, but it’s to compensate for some other changes they have been forced to do.

Davidhs Thu 24-Sep-20 19:38:48

I use First Direct (HSBC) Authourised Overdraft rates nearly 40% but you do get the first £250 free which is nice for marginal overspenders.
Personal loans much less 10 - 20% depending on amount