Santander latest bank to set 40% overdraft rate
14/01/2020 | news | business | 897
The move comes as the bank cuts the interest rate it pays on its flagship current account.
1
14/01/2020 12:43:01 417 30
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That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting
53
14/01/2020 14:04:42 53 85
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@1. Lynch66 "That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting" What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for
2
14/01/2020 12:46:51 127 11
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More gambling with a user friendly name. “Overdraft facility”.
3
14/01/2020 12:54:56 66 5
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Nothing ever changes.Banks will never loose out. As far as the G public are concerned. My bank are increasing the cost of credit card usage at a cash point. Along with these measures. Along with reducing the benefits of free perks given via the card.
4
14/01/2020 12:54:56 42 6
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All thanks to the FCA's meddling
5
14/01/2020 12:57:07 244 8
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We live in a truly weird world in which it will become significantly cheaper to use a credit card than your current account. Still anything is better than the old days when the banks used to send out letters daily to let you know your were overdrawn...and charge you £22.50 for each letter added to...your overdraft!
6
MVP
14/01/2020 12:58:32 336 20
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The regulators really need to get tougher with the banks. 40% interest rate is simply unaffordable for most people and will lead to further financial hardship and suffering
7
14/01/2020 12:59:18 270 14
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It is important that people see that it is GREED from the banks. They will never change. They are not our friends and they are out to make money. We have no choice but to have a bank account these days for one reason and another and they have us over the barrel.
8
14/01/2020 13:00:18 541 25
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The banks can borrow money from the government at less than 1% and then loan it to you at 40% - just a small mark up then! Is it any wonder banks and bankers have such a bad name?
127
14/01/2020 14:33:06 18 0
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@8 'The banks can borrow money from the government at less than 1% and then loan it to you at 40% - just a small mark up then!' So they are borrowing our money at 1% and loaning it back to us at 40%.
9
14/01/2020 13:03:30 176 16
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Leaches
22
14/01/2020 13:22:19 32 9
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9. Posted by pompey327 on 17 minutes ago Leaches - No, not your money so they can charge you whatever they want. Moral of the story? DONT GO INTO THE RED.
642
14/01/2020 17:38:44 10 0
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@9. pompey327on "Leaches" Sorry, but banks are NOT leaches. Leaches have very valuable medical applications in which they do great good. I see no reason to slander their good name by associating them with banks.... :)
10
14/01/2020 13:04:40 59 3
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At the same time banks have yet again reduced savings account interest. some how being a saver has become a dirty word how have things got this bad, maybe 10 years of BOE rate setting, a global financial experiment that has failed us all so if you have savings you are locked in and if try to move then you have to change all your current accounts etc for an introductory rate what a mess
11
14/01/2020 13:05:21 189 11
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The reality with so-called regulators is that they live in the pockets of the industries they purport to regulate. The banking industry is just a huge a cartel, and these days savers are getting the worst deal of anyone.
12
14/01/2020 13:11:54 17 3
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Just like other bank's going out of their way to lose customer s
13
14/01/2020 13:13:25 8 3
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This is mad and will have a big effect on people who have overdrafts.What is even a bigger worry is that the timescale seems very short.
14
14/01/2020 13:15:06 12 3
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there should be a government inquiry into this.......take ten expensive years and do nothing,thats how it works,isnt it?
15
14/01/2020 13:15:56 21 3
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Santander made for the 6 months to June 2019 £589m in profits so with such small profits they now feel they have to give their customers even less. I wonder what would happen to them if every single one of their UK customers decided to go elsewhere with their money. I bet the rates would go up a lot. People need to realise they hold the power-maybe a bank has to go bust before they realise.
16
14/01/2020 13:16:26 15 4
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I never use overdraft funding, but as a matter of principle, time to move on.
17
14/01/2020 13:17:37 91 1
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Good competition between the banks or a cartel? You decide. No justification for such a high interest rate at all. Regulator should cap at Base + 10% or similar. Another case of the banks cashing in at the expense of both savers and borrowers.
18
14/01/2020 13:18:27 219 154
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The answer is - live within your means - I'll bet the majority of you have forgotten what that means!
274
14/01/2020 15:18:59 6 0
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18. Posted by Bilgepump "The answer is - live within your means - I'll bet the majority of you have forgotten what that means!" If we all within our means, the economy would collapse! Government supports debt & needs us to spend. It doesn't take a genius to work that out - Look at the interest rate.. and how much banks lends against salaries these days for mortgages!
570
14/01/2020 17:07:57 12 1
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18. Posted by Bilgepump The answer is - live within your means - I'll bet the majority of you have forgotten what that means! //// Not at all. But, faced with constantly rising prices and stagnant wages, it is very hard indeed. I await the smart-a##ed reply.
19
14/01/2020 13:18:27 15 4
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Another perfect example of the incompetent FCA's meddling making it worse for your average customer. Punishing people who use their overdraft responsibly, by forcing them to pay the same rates as those who do not take responsibility for their own money. Obviously the rates couldn't come down, as it would encourage more unauthorised borrowing which couldn't be paid back.
20
14/01/2020 13:21:09 67 4
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I'm with Santander and think this is completely and utterly immoral I have a Mortgage,Business Account plus their 123 Account and if I didn't know that the other banks were also feeding off the carcass's of people who are struggling I would be gone Our 'Watchdog' the Financial Conduct Authority is an absolute joke and should hang it's head in shame I'd be ashamed to admit I was in banking
21
14/01/2020 13:21:39 9 4
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According to the young IT savvy a few months ago, you should have invested every penny you had in Onecoin Now THAT is a dead duck
9
14/01/2020 13:03:30 176 16
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Leaches
22
14/01/2020 13:22:19 32 9
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9. Posted by pompey327 on 17 minutes ago Leaches - No, not your money so they can charge you whatever they want. Moral of the story? DONT GO INTO THE RED.
23
14/01/2020 13:22:49 43 4
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Well done Martin Lewis. His campaign has resulted in the new regulations being introduced. This was to protect irresponsible bank customers who could not be bothered to arrange an overdraft. The result is responsible customers who in the past could arrange overdrafts at reasonable rates are now suffering higher rates. My own bank has withdrawn my free if limited overdraft facility.
24
14/01/2020 13:25:21 53 19
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Ha... People wouldn't need an overdraft if they didn't pay huge amounts for the stuff they don't need each month like phones, new cars, booze, expensive holidays, sky/virgin tv etc, take aways. The list goes on. Not the banks fault. Learn to budget properly = no overdraft. Simples :-)
25
14/01/2020 13:27:12 13 2
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Well thats 100'000's of people needing to borrow from somewhere else to pay off their arranged overdrafts smartish then! How can this be seen as a positive for the consumer (have the FCA lost their minds)..
26
14/01/2020 13:28:02 60 3
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If you don’t like paying high interest on your loan there is a very simple solution. Dickens offered great financial advice known as the “The Micawber Principle”: "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." Don’t borrow what you cannot repay.
27
14/01/2020 13:30:24 14 3
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Am I alone in thinking that increasing overdraft rates from 10% to 40% for arranged overdrafts is both uncompetitive and stupid? Why not increase to say 20%? The real issue is that banks have become used to gleaning vast fees from unarranged overdrafts and now seek to replace that income. Bad mistake. I am thinking of starting my own bank offering reasonable overdraft fees.
28
14/01/2020 13:30:24 47 2
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Why are interest rates so one-sided? When savers make loans to a bank, in the form of savings, we are expected to be happy with 0.1% to 1% interest. There should be legislation to stop this, as banks are clearly now being blatantly unethical. Interest rates to savers should be a percentage of what banks charge borrowers - say 70%. If banks charge 40%, then savers should receive 28%.
29
14/01/2020 13:34:56 10 1
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Banksters all busy dropping savings rates, cushion the bottom line?
30
14/01/2020 13:36:17 40 3
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Where's the regulator in all of this that is supposed to protect the customer Useless again
31
14/01/2020 13:36:47 268 5
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I have a 123 account. It was bad enough cutting it from 3% to 1.5% but now it is going to 1% and the cashback is getting capped I'll withdraw the £20K and stick it elsewhere.
858
14/01/2020 21:20:02 5 1
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31 draxx - I’m in complete agreement with you and will resort to exactly the same measure. My 20k will very soon be going elsewhere.
32
14/01/2020 13:16:58 14 36
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How on Earth can it be fair to raise the interest rate to 40%? It's Santander's fault I have an overdraft as big as it is after they increased the facility without my knowledge when I graduated university, at a time I was too young to understand the implications, and now they want me to pay more than double what I pay now to use it when I already struggle with finances because of their lending!!
44
14/01/2020 13:57:48 40 2
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@32 “when I graduated university, at a time I was too young to understand the implications” And there is the perfect example of why this country is awash with debt! Every child at school should be taught how interest, compounding and Annual Percentage Rates work. By the time they are old enough to legally borrow money, everyone should be very well aware of the implications.
33
14/01/2020 13:39:39 7 2
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This is Santander trying to get rid of unprofitable clients by making it uneconomical to bank there. The trouble is that all the banks will start doing it and in a year or two an overdraft rate of 40% will be seen as 'normal' and a rate of 30% will be seen as 'cheap'
34
14/01/2020 13:40:19 5 1
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What bankers!
35
OKY
14/01/2020 13:42:30 28 8
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The solution is simple. Don't borrow money and reduce your standard of living to match your income.
36
14/01/2020 13:43:00 34 12
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Why borrow via overdraft in the first place? Know what you are paid each month, set a spending budget, cut out overspending and live within your means. Why is the idiocy of the customer always the fault of the banks? 'Oh the banks made me spend too much. Oh the banks made it too easy to gamble all my money away. Oh its the bank's fault I fell for a scam.....etc etc. Sick of hearing it.
37
14/01/2020 13:43:00 85 1
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What a rip off the Santander 123 current account is. You actually have to pay a fee to have one even if you do get some cashbacks. With a measly 1% interest who would bother?
155
14/01/2020 14:41:00 20 0
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37 george What a rip off the Santander 123 current account is. You actually have to pay a fee to have one even if you do get some cashbacks. With a measly 1% interest who would bother? -- Back when it was 3% interest plus cashback on bills, I didn't mind the fee (I kept my 2x accs at £20K each). Now they are just about matching other banks rates plus charging a fee, they can forget it.
38
14/01/2020 13:47:02 16 1
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What a fantastic racket to get involved in! So they got rid of the likes of Wonga et al, so that they could have more of the market to themselves. It's been 12 years of mishandling this calamity. Foolish, impressionable & over-indulgent narcissist? Yeah! You qualify for a cheap loan. Responsible & aware that there is a tomorrow? Yeah! Give us your money & say ta for us eroding its value.
39
14/01/2020 13:54:06 17 1
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The chief executive of the Financial Conduct Authority (FCA) Andrew Bailey has seen his total remuneration boosted to £589,000 in 2018, up from £449,000 just a year earlier. And does absolutely nothing to help the consumer. I wonder how "close" he is to the heads of the banks he's regulating? (I appreciate he's moving back to the B of E)
40
14/01/2020 13:55:27 8 4
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If you really need the money, shop around for an appropriate loan (~2.5% interest for example) Don't end up giving a bank 40% interest when they'll only give you 1.5% - or less. Unfortunately, while some genuinely struggle - many choose to live beyond their means.
41
14/01/2020 13:55:57 22 3
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There are a bunch of people who are incapable of managing their money and blame the banks when they go overdrawn without first arranging it and get penalized. They have ruined it for those that do manage their money and only occasionally need an overdraft facility.
42
14/01/2020 13:52:07 37 2
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All these banks are getting as bad as Wonga. Mine has 0.005 interest on money on deposit but 28.89% on overdrafts, and from 6 local branches is down to one, which is only there to flog you insurance!
43
14/01/2020 13:57:18 112 5
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That will teach us next time the banks need to be bail out. Let them fail. This is pure greed. We gave them billions they give us sod all.
741
14/01/2020 18:37:36 6 0
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43. Posted by bounty-is-back-from-the-dead on 5 hours ago That will teach us next time the banks need to be bail out. Let them fail. David Cameron signed off on the banks using customer savings if neccesary in the event of another crash. Customers would then be issued bonds to replace their savings. If you have savings do not leave them in a bank. Really don't.
32
14/01/2020 13:16:58 14 36
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How on Earth can it be fair to raise the interest rate to 40%? It's Santander's fault I have an overdraft as big as it is after they increased the facility without my knowledge when I graduated university, at a time I was too young to understand the implications, and now they want me to pay more than double what I pay now to use it when I already struggle with finances because of their lending!!
44
14/01/2020 13:57:48 40 2
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@32 “when I graduated university, at a time I was too young to understand the implications” And there is the perfect example of why this country is awash with debt! Every child at school should be taught how interest, compounding and Annual Percentage Rates work. By the time they are old enough to legally borrow money, everyone should be very well aware of the implications.
45
14/01/2020 13:58:28 10 5
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I've been a contractor for 20 years and while I haven't been in my overdraft for years it is a safety net if work drys up and I end up for some reason burning through my savings. At 40% it doesn't work now, the costs are too high, but when it gets to that point you have zero chance of getting a loan. This is the fiscally prudent being punished to accommodate those who can't manage their money.
80
14/01/2020 14:17:28 9 5
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@45. Polymorph .... This is the fiscally prudent being punished to accommodate those who can't manage their money. ___ What do those few people who 'can't manage their money' have to do with it? There is none so blind as the 'free marketeer'. You're NOT the victim of Joe Public You're the victim of Profiteering Banks.
46
14/01/2020 13:58:38 94 3
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40% charge on overdrafts whilst dropping interest to 1% for savers Dick Turpin would be proud of YOU Sandandar
47
14/01/2020 13:59:09 11 1
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I agree with previous posters about living within your means, but there will often be an emergency that needs a cash injection (eg breakdown of essential white goods, like fridge or washing machine). You have a few options - overdraft, credit card or personal loan. I know which I would choose and it has never been the overdraft.
48
14/01/2020 14:00:29 108 2
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I haven't learned much in my 65 years on this planet, but one thing I have learned: Everybody is after your money. Banks and their associated industry are classic examples of this and are up there with gangsters. Despicable organisations.
49
14/01/2020 14:02:10 10 1
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They are all odious carbuncles and drink in the same bar
50
14/01/2020 14:02:10 16 1
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There are still people who argue the economy is going well. All the signs are that it isn't, because everyone is now protecting their backsides. 40% interest is not usury, it is go away and don't darken the door of this bank again. Debt is killing our economy and the government needs to step up to the plate.
54
14/01/2020 14:06:12 11 1
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@50. It’s not a question of arguing the economy is doing well. Look at the data. Uk doing better than the EU. There is a global slowdown happening of which we are not immune. Debt in itself does not kill the economy. If growth is good you can pay it down. We are overdue a recession whatever happens.
51
14/01/2020 14:03:31 7 3
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Banks need more regulation
52
14/01/2020 14:04:01 26 1
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I for one will be switching my account to a more advantageous one.
1
14/01/2020 12:43:01 417 30
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That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting
53
14/01/2020 14:04:42 53 85
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@1. Lynch66 "That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting" What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for
58
14/01/2020 14:08:54 55 73
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@53. Posted byarcangelon "What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for" ============ I fear that there is some truth in that.
66
14/01/2020 14:15:27 71 64
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@53. archangel Everyone forgets the reason for austerity brought on by a Labour Government who nearly bankrupt the country. People have such short memories.
50
14/01/2020 14:02:10 16 1
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There are still people who argue the economy is going well. All the signs are that it isn't, because everyone is now protecting their backsides. 40% interest is not usury, it is go away and don't darken the door of this bank again. Debt is killing our economy and the government needs to step up to the plate.
54
14/01/2020 14:06:12 11 1
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@50. It’s not a question of arguing the economy is doing well. Look at the data. Uk doing better than the EU. There is a global slowdown happening of which we are not immune. Debt in itself does not kill the economy. If growth is good you can pay it down. We are overdue a recession whatever happens.
60
14/01/2020 14:11:25 14 1
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@54 charlieboy I agree on the recession front. We shuffled our way through the financial crisis heavily subsidizing everything with QE. It's all been papered over but it will have to be accounted for at some point. Our national debt is now colossal and the cost of financing it is increasing, same applies to individuals, it will all end in tears at some point.
55
14/01/2020 14:01:12 123 6
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Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK.
61
14/01/2020 14:11:55 22 1
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55. Posted byGeoneton 7 minutes ago Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK. ========= My English born daughter lives in Germany (dual citizenship.) She is horrified at some of the things that happen in the UK regarding finances.
87
14/01/2020 14:19:29 36 3
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55. Posted by Geonet o "Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate" It not just banking its insurance as well. My business in 2000's was hammered by insurance costs. My friend in Germany, who ran a similar business couldn't belive how much I had to fork out. This country is run for the finance businesses and them only. Its almost feudal
532
14/01/2020 16:55:21 11 6
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"55 Geonet Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK." We reject the EU with its freedoms and namby pamby consumer rights. After Brexit let's cut the red tape and let banks charge what they like. Want interest on your savings? Move abroad!
56
14/01/2020 14:06:53 5 5
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Banks should be responsible for scams if using the bank systems to move money around!!!
57
14/01/2020 14:07:13 89 63
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Nobody is forcing anyone to have an overdraft, arranged or otherwise. Take responsibility.
53
14/01/2020 14:04:42 53 85
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@1. Lynch66 "That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting" What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for
58
14/01/2020 14:08:54 55 73
bbc
@53. Posted byarcangelon "What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for" ============ I fear that there is some truth in that.
59
14/01/2020 14:10:55 16 2
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Regardless of why people use an unarranged overdraft (money they have no entitlement to), why do the banks not "bounce" the payment due to insufficient funds or at the very least call the person and offer an arrangement prior to releasing funds - Oh that's right, you keep your customer and they have to pay you for the privilege. Silly me!
54
14/01/2020 14:06:12 11 1
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@50. It’s not a question of arguing the economy is doing well. Look at the data. Uk doing better than the EU. There is a global slowdown happening of which we are not immune. Debt in itself does not kill the economy. If growth is good you can pay it down. We are overdue a recession whatever happens.
60
14/01/2020 14:11:25 14 1
bbc
@54 charlieboy I agree on the recession front. We shuffled our way through the financial crisis heavily subsidizing everything with QE. It's all been papered over but it will have to be accounted for at some point. Our national debt is now colossal and the cost of financing it is increasing, same applies to individuals, it will all end in tears at some point.
55
14/01/2020 14:01:12 123 6
bbc
Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK.
61
14/01/2020 14:11:55 22 1
bbc
55. Posted byGeoneton 7 minutes ago Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK. ========= My English born daughter lives in Germany (dual citizenship.) She is horrified at some of the things that happen in the UK regarding finances.
62
14/01/2020 14:12:25 10 4
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This trend is awful. It penalises those already struggling and typically worse then credit cards. The regulator needs to step in.
67
14/01/2020 14:15:27 107 1
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@62 Simple as "The regulator needs to step in." The regulator CAUSED this by saying the banks couldn't charge more interest to people with an unauthorized overdraft than those with one setup. So the banks put the normal rate up to the unauthorized rate. What really should be the question is what numb nutz in the FCA thought this was a genius solution? Corrupt or Stupid?
63
14/01/2020 14:12:46 14 3
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Overdraft charges, rules around 'persistent debt'... It's funny how these edicts which are meant to 'safeguard the consumer' seem to end up screwing said consumer while banks continue business as usual...
64
14/01/2020 14:14:36 22 1
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40% APR is a damned site better than 15 years ago when you'd be charged £25 for a letter saying you were a pound overdrawn for an hour (that literally happened to me courtesy of the Halifax taking 5 days to clear funds from another Halifax account.
65
14/01/2020 14:15:07 8 1
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I am a 123 account holder . I am a pensioner on a fixed income . This action by Santander is much the same as the TSB in slashing savings rates . I was forced into TSB when LloydsTsb broke up. Promised nothing would change . That lasted 6 months then the amount interest was paid on current a/cs was halved . There needs to be a correlation between interest charges and savings rates .
53
14/01/2020 14:04:42 53 85
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@1. Lynch66 "That's a great way to help people in debt, drastically increase there debt We are seeing banks setting rates that most would consider Loan sharks Disgusting" What did you expect with the tories in charge.... this is just the start of the next 5 years of our protections disappearing but you voted for
66
14/01/2020 14:15:27 71 64
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@53. archangel Everyone forgets the reason for austerity brought on by a Labour Government who nearly bankrupt the country. People have such short memories.
394
Tim
14/01/2020 15:57:19 10 0
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@66 - No! Just wrong. It was the banks that brought about the GLOBAL economic downturn.
62
14/01/2020 14:12:25 10 4
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This trend is awful. It penalises those already struggling and typically worse then credit cards. The regulator needs to step in.
67
14/01/2020 14:15:27 107 1
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@62 Simple as "The regulator needs to step in." The regulator CAUSED this by saying the banks couldn't charge more interest to people with an unauthorized overdraft than those with one setup. So the banks put the normal rate up to the unauthorized rate. What really should be the question is what numb nutz in the FCA thought this was a genius solution? Corrupt or Stupid?
85
14/01/2020 14:18:59 11 2
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@67 absolutely. The FCA was extremely naive. It was obvious the Banks would react in a disproportionate manner to protect revenue streams. The FCA should have thought about the likely consequences and placed a cap on the Overdraft Charge.
68
14/01/2020 14:15:37 8 1
bbc
When you have a loan or an overdraft at the bank, it's not the banks money you get, it's other customers money, no money, no bank and most people only use a bank as a convenience to pay or recieve money, not always to borrow. Fifty years ago most folks were paid in cash at their employment, that all ended and now we are an almost cashless society, even cheque payments are rare now....The future?
69
14/01/2020 14:15:57 12 52
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Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;)
76
14/01/2020 14:16:48 34 6
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69 Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) --------- No you won't
79
14/01/2020 14:17:28 21 1
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@69. Posted byTom-Stocktonon Just now Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) =========== Hopefully this is satire? :)
97
14/01/2020 14:23:41 4 0
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Re 69. Posted by You on 3 minutes ago Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) ++ We could make our own version when we have control back on 1/2/2020 - call it Suntandoh and reverse the percentages. In fact I’m sure Johnson promised this before the election didn’t he? (Yes - I’m just kidding)
70
14/01/2020 14:16:17 12 1
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I'm popping straight round to my local branch to complain Oh silly me, its 23 miles away !
I'm popping straight round to my local branch to complain Oh silly me, its 23 miles away ! Removed
72
14/01/2020 14:16:17 6 14
bbc
The idle poor get it in the neck once again. That's what you get for voting Conservative but you knew what you were voting for. I don't care, like Boris I have more money than I know what to do with. No interest, free banking and a free credit card because the fees are paid by the poor.
418
14/01/2020 16:04:03 11 2
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72. Posted by Nick on 2 hours ago The idle poor get it in the neck once again. That's what you get for voting Conservative but you knew what you were voting for. ___ ???? Well if you really are referring to "Idle Poor" as in your post, there is a solution. Get off your backsides and stop being idle! The working poor are annoyed that they are carrying the idle poor.
73
14/01/2020 14:16:27 5 1
bbc
Once again the FCA is "Protecting" customers with an overdraft. Interest rates virtually zero but borrow on a credit card or overdraft and we will Squeeze you dry. 40% APR is a scandal. Good to know the state is looking after us all!!
101
14/01/2020 14:25:42 16 7
bbc
@ 73. david23 The FCA didn't set the interest rate. The FCA just said the rates for approved and unapproved had to be the same. The Banks set the Rate and they are obviously in a CARTEL The Tories 'free market' ideology accepts Cartels and will do nothing. You HYSers voted for the Free Market and the Fiscal Responsible Tories. Taught Labour a Lesson You Said. Suck It Up.
74
14/01/2020 14:16:27 35 0
bbc
I have been a Santander 123 customer for a number of years. I am simply going to transfer my money from the 123 account into a easy access account paying 1.4%. I would suggest people followed suit.
108
14/01/2020 14:27:43 25 0
bbc
74. brian the lion I'm with you on this. Santander have gradually eroded the benefits of the 123 account to the point its just misplaced loyalty to stay with them. I will be off to find another bank very soon
75
14/01/2020 14:16:37 16 2
bbc
Pure greed. Reducing the interest rate for savers to 1% what is the point in leaving it there when you can get the same rate elsewhere without paying account charges. Yes that's right what the article omits to say is that you pay £5 per month charge just to have the account. They might change their minds if everyone starts closing their accounts.
69
14/01/2020 14:15:57 12 52
bbc
Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;)
76
14/01/2020 14:16:48 34 6
bbc
69 Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) --------- No you won't
77
14/01/2020 14:16:58 40 4
bbc
Amazing that circa 10years ago the banks borrowed millions from the taxpayer (which was never really paid back) - did they get hit for 40% overdraft charges?
99
14/01/2020 14:23:41 5 0
bbc
77. Posted bysaywhatyouseeon 4 minutes ago Amazing that circa 10years ago the banks borrowed millions from the taxpayer (which was never really paid back) - --- Only they didn't. The govt bought shares in the banks at knockdown prices. Technically the tax payer owns some of the larger banks now.
78
14/01/2020 14:17:08 113 3
bbc
I'm popping straight round to my local branch to complain Oh silly me, for my convenience and the bank's efficiency its now 23 miles away !
69
14/01/2020 14:15:57 12 52
bbc
Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;)
79
14/01/2020 14:17:28 21 1
bbc
@69. Posted byTom-Stocktonon Just now Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) =========== Hopefully this is satire? :)
45
14/01/2020 13:58:28 10 5
bbc
I've been a contractor for 20 years and while I haven't been in my overdraft for years it is a safety net if work drys up and I end up for some reason burning through my savings. At 40% it doesn't work now, the costs are too high, but when it gets to that point you have zero chance of getting a loan. This is the fiscally prudent being punished to accommodate those who can't manage their money.
80
14/01/2020 14:17:28 9 5
bbc
@45. Polymorph .... This is the fiscally prudent being punished to accommodate those who can't manage their money. ___ What do those few people who 'can't manage their money' have to do with it? There is none so blind as the 'free marketeer'. You're NOT the victim of Joe Public You're the victim of Profiteering Banks.
91
14/01/2020 14:21:40 21 2
bbc
@80 Atom If you go overdrawn and you have no facility you are showing you can't manage your money. This is why it attracted a high rate, more defaults, more costs, inevitable defaults. It was more risk, hence the cost. Now we are all being tarred with these peoples lack of responsibility. People need to own their own malfunctions, and not keep expecting everyone else to pay for them.
81
14/01/2020 14:17:28 22 2
bbc
We get rid of these so called 'Loan Shark' companies and Payday lenders and replace them with the established banks. Looks like the Financial Ombudsman have stitched up the consumer once again in favour of the banks. When will the Financial Ombudsman start acting in the best interest of the consumers and not the banks?
82
14/01/2020 14:18:18 9 1
bbc
How mere mortals can ever contemplate retirement with interest rates like they are is for sure a worry, but I can assure you if the interest rate goes up the banks will keep hold of your money for as long as they can.
83
14/01/2020 14:18:28 36 2
bbc
Frankly, I don't much care about unauthorised overdraught charges as I've always done my best to live within my means. However, now I'm finally at a stage in my life when I can afford to save, I'm pretty disgusted that the banks don't increase the interest they pay at the same time as the interest they charge. I suppose that would affect their bonuses...
84
14/01/2020 14:18:28 5 2
bbc
Those who stay in credit should receive the same in interest I wonder how many would then go overdrawn.
67
14/01/2020 14:15:27 107 1
bbc
@62 Simple as "The regulator needs to step in." The regulator CAUSED this by saying the banks couldn't charge more interest to people with an unauthorized overdraft than those with one setup. So the banks put the normal rate up to the unauthorized rate. What really should be the question is what numb nutz in the FCA thought this was a genius solution? Corrupt or Stupid?
85
14/01/2020 14:18:59 11 2
bbc
@67 absolutely. The FCA was extremely naive. It was obvious the Banks would react in a disproportionate manner to protect revenue streams. The FCA should have thought about the likely consequences and placed a cap on the Overdraft Charge.
86
14/01/2020 14:18:59 9 0
bbc
Short term unsecured lending is expensive. You can always take out a proper loan instead. Unauthorised overdrafts should be illegal, bills not paid. Santander otherwise like all banks, designed to cheat the solvent. Create 'new' accounts with enticements, then sideline them on derisory returns. The standard cheating of human nature not to be forvever swapping sen across finance especially.
55
14/01/2020 14:01:12 123 6
bbc
Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate and banks over here do not get away with such rates... I am surprised this is possible in the UK.
87
14/01/2020 14:19:29 36 3
bbc
55. Posted by Geonet o "Thank God I live in Germany... Under German law this would be deemed as an illegal interest rate" It not just banking its insurance as well. My business in 2000's was hammered by insurance costs. My friend in Germany, who ran a similar business couldn't belive how much I had to fork out. This country is run for the finance businesses and them only. Its almost feudal
115
14/01/2020 14:29:14 8 1
bbc
@87. Posted byAlbaAlon It not just banking its insurance as well. My business in 2000's was hammered by insurance costs. My friend in Germany, who ran a similar business couldn't belive how much I had to fork out. This country is run for the finance businesses and them only. Its almost feudal ======== Agree 99%. I've put the last bit right: This country is run for the gangsters and them only.
88
14/01/2020 14:19:49 10 2
bbc
The banks must be really struggling with only a 10,000% markup on the buying and selling of money. We need a change in regulation to allow any business to operate a fractional reserve on a formula rather than a minimum capital.
89
14/01/2020 14:21:00 19 14
bbc
Anybody from outside the UK wondering what the fuss is all about - welcome to Britain under a Tory government. And after Brexit, when more British banking will go overseas, even the UK government will have less control or say over banking practices. Enjoy.
90
14/01/2020 14:21:00 18 3
bbc
Banks. Making money off your money then charging you for the privilege.
80
14/01/2020 14:17:28 9 5
bbc
@45. Polymorph .... This is the fiscally prudent being punished to accommodate those who can't manage their money. ___ What do those few people who 'can't manage their money' have to do with it? There is none so blind as the 'free marketeer'. You're NOT the victim of Joe Public You're the victim of Profiteering Banks.
91
14/01/2020 14:21:40 21 2
bbc
@80 Atom If you go overdrawn and you have no facility you are showing you can't manage your money. This is why it attracted a high rate, more defaults, more costs, inevitable defaults. It was more risk, hence the cost. Now we are all being tarred with these peoples lack of responsibility. People need to own their own malfunctions, and not keep expecting everyone else to pay for them.
92
14/01/2020 14:21:40 28 1
bbc
If you have an account with them just leave.
93
14/01/2020 14:22:51 13 2
bbc
The banks are effectively declaring war on their customers and on the regulator.
94
14/01/2020 14:23:11 17 3
bbc
Remember when the banks came to us to bail them out ? Remember when they promised to repay our kindness and support with a fairer more transparent properly regulated banking system...... Oops sorry that bit was just a dream.
95
14/01/2020 14:23:31 7 3
bbc
Santander has been the world's worst bank since it was Abbey National
96
14/01/2020 14:23:31 6 0
bbc
Why don't they simply not send out money that you don't have?? A text warning would be useful, but that might reduce profits.
69
14/01/2020 14:15:57 12 52
bbc
Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;)
97
14/01/2020 14:23:41 4 0
bbc
Re 69. Posted by You on 3 minutes ago Spanish bank! At least we’ll be shot of them when Brexit is done on 31/1/2020. ;) ++ We could make our own version when we have control back on 1/2/2020 - call it Suntandoh and reverse the percentages. In fact I’m sure Johnson promised this before the election didn’t he? (Yes - I’m just kidding)
98
14/01/2020 14:23:41 6 4
bbc
So you earn £200 if you have £20,000 but they charge you £120 in effect reducing interest to £80 or 0.4%
180
14/01/2020 14:43:43 1 0
bbc
#98 - wrt £120 fees Good maths
77
14/01/2020 14:16:58 40 4
bbc
Amazing that circa 10years ago the banks borrowed millions from the taxpayer (which was never really paid back) - did they get hit for 40% overdraft charges?
99
14/01/2020 14:23:41 5 0
bbc
77. Posted bysaywhatyouseeon 4 minutes ago Amazing that circa 10years ago the banks borrowed millions from the taxpayer (which was never really paid back) - --- Only they didn't. The govt bought shares in the banks at knockdown prices. Technically the tax payer owns some of the larger banks now.
109
agm
14/01/2020 14:28:03 4 8
bbc
99. Posted by Peter_Sym on Or - the Tory government took those potential gains and gave them to their rich friends at a cut down price - and kept the assets which their friends wouldn't buy off them. Kept the risk - and gave away the profits.
126
14/01/2020 14:32:36 2 1
bbc
@99. Posted byPeter_Symon 5 minutes ago Only they didn't. The govt bought shares in the banks at knockdown prices. Technically the tax payer owns some of the larger banks now. =========== You need to think that one through...........
100
14/01/2020 14:24:31 57 3
bbc
I am sure I will get a lot of down points but the facts are a lot of people are living beyond their means . Sure there are people who are suffering but in the main to many are living in a fools paradise . I know of one couple with a joint income of over £100,000 who lost their house because of having a new car every year in addition to foreign holidays. your income should always exceed expenditure
119
14/01/2020 14:31:25 6 4
bbc
@ 100. EYEGLASS What you say is true.....BUT - Thatcher's economic model is based on debt and borrowing. Sub Prime wheeling and dealing still exists. Boom and Bust is the Essence of Thatcherism. How many decades, how many Booms and Busts does it take b4 you vote for a Gov't that doesn't base its Fiscal model on Businesses surviving on Borrowing?