MoneyMagpie

Join MoneyMagpie today!
Log in or Register.

Overdraft charges

Viewing 11 posts - 1 through 11 (of 11 total)
  • Author
    Posts
  • #150693
    HannahHannah
    Participant

    I’ve just been charged for going into my overdraft, not much, but I don’t have the money to cover the costs as I’m waiting for Universal Credit payments to come through.

    #150703
    AvatarAmy
    Participant

    Hi, I got a letter through from my bank yesterday saying that if you go into the first £500 of your overdraft you won’t be charged. Not sure if this is applicable for every bank yet but may be worth checking out.

    #150711
    Sam SmithSam Smith
    Participant

    My bank (Barclays) seem to have frozen overdraft charges. For now anyway. It may have been an automated thing done in error? May be worth reaching out to them and seeing what they say.

    #150719
    Annie ThorpeAnnie Thorpe
    Keymaster

    Hi Hannah,

    The FCA’s latest guidelines are that the first £500 of an overdraft should be interest-free for now. Some systems won’t have caught up with this, and you may have accidentally been charged. However, if you went into an overdraft and didn’t have one agreed with the bank beforehand, they can charge you for that. The same goes for if you go over £500 (or, if your agreed limit was say £350 and you went over that) – you’re still going to get charged interest on the amounts above the limit.

    Definitely give your bank a call to see if they can refund the charges!

    #150819
    HannahHannah
    Participant

    From what I can see on my online banking I am still being charged so the system mustn’t have caught up yet. Will definitely give them a ring and see if they can refund the charges though, thanks.

    #150859
    AvatarStan
    Participant

    I also received an email from Barclays telling me overdraft charges were suspended. Good to know.

    #151023
    MichaelMichael
    Participant

    I think the most important thing is to be upfront with your bank or any other financial services provider. If you think you are going to exceed a limit or miss a payment try to tell them this before it occurs. Banks get bad press for their actions, in a lot of cases this is justified, however the sooner they know of a circumstance the sooner it can be discussed and dealt with. Once it has happened the conversation tends to be different.

    #151057
    Annie ThorpeAnnie Thorpe
    Keymaster

    Michael’s right – especially right now, banks are being urged by the FCA to demonstrate increased forbearance. They’re getting thousands of calls every day right now, and most customers are finding that it’s easy to ask for payment holidays – and that they’re not feeling ‘judged’ for doing so.

    Interestingly, I wonder if the stigma of debt will change over the coming months?

    #151453
    Avatarsarah
    Participant

    <p style=”text-align: left;”>Yes Lloyd’s is 500 before they starting charging u too</p>

    #151536
    claireclaire
    Participant

    I’ve just been charged for going into my overdraft, not much, but I don’t have the money to cover the costs as I’m waiting for Universal Credit payments to come through.

    I thought banks were scrubbing charges during this time, what bank is it? im sorry to hear this. I hope you get the universal credit soon, and that the bank can be reasonable and scrub it on this occasion.

    #151537
    claireclaire
    Participant

    Hi Hannah, The FCA’s latest guidelines are that the first £500 of an overdraft should be interest-free for now. Some systems won’t have caught up with this, and you may have accidentally been charged. However, if you went into an overdraft and didn’t have one agreed with the bank beforehand, they can charge you for that. The same goes for if you go over £500 (or, if your agreed limit was say £350 and you went over that) – you’re still going to get charged interest on the amounts above the limit. Definitely give your bank a call to see if they can refund the charges!

    that’s great info thanks:) I was a bit unsure of the way it worked for non agreed and agreed overdrafts. I just assumed that all banks had stopped charges during the pandemic. now I have a better understanding.

Viewing 11 posts - 1 through 11 (of 11 total)
  • You must be logged in to reply to this topic.