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Customers Facing Historic High Overdraft Fees Of Nearly 20% Despite Record Low Base Rate


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#1 interestrateripoff

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Posted 03 May 2012 - 07:27 AM

http://www.dailymail...-base-rate.html

Banks are charging customers the highest overdraft rates since records began.

The average authorised overdraft rate is 19.52 per cent – nearly 40 times the base rate which has been kept at a historic low of 0.5 per cent for three years. It means an overdraft of £1,000 for a year would cost £195 before a penny of the debt was paid off.


So the Wail goes for interest only overdrafts....

Don't use your overdraft unless it is an emergency, too many people for too long have lived in them.

I know of people who see the overdraft as "their" money which needs to be spent.

Proof that Brown had repeated IMF / OECD / BIS warnings over house prices and did nothing!!!
Looting: The Economic Underworld Of Bankruptcy For Profit
The exponential growth of debt and the unsustainability of debt
The logic of HPI @ 10% YoY means your £100k house would be worth £1.38bn in 100 years
Paying down my mortgage with money found on the street

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE
If DEBT is the problem REPAYMENT is the solution or you default

 

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#2 Wurzel Of Highbridge

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Posted 03 May 2012 - 08:10 AM

The thought of going into my overdraft sends a chill down my spine. It would be a dark dark day for that to happen. :(
  • I don't believe that there can be sustainable asset inflation when there is underlying wage deflation.
  • No matter what you choose to do in life, choose to do what you are best at and be the best you can be.
  • Everyone is a vested interest and everything is rigged.
  • Sometimes bubble dynamics just end, people stop believing and what was once a virtuous cycle suddenly morphs into vicious one.
  • The real value goes beyond the money.

I have come to realize that there is widespread belief in a 2015 global recovery.At this point in June 2013 is clear that there will be no recovery in 2015, central bankers have run out of tools to patch over the structural problems and the can can no longer be kicked.As we approach 2015 it will be clear that the emperor has no clothes and there will be an economic crash that makes 2009 look trivial.Note: I was wrong on 2nd May 2012 12:00 - London Top called prediction of London will fall by >10% in 12 months.


#3 eight

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Posted 03 May 2012 - 08:38 AM

http://www.dailymail...-base-rate.html



So the Wail goes for interest only overdrafts....

Don't use your overdraft unless it is an emergency, too many people for too long have lived in them.

I know of people who see the overdraft as "their" money which needs to be spent.


Must be those astronomical "payday" loans I keep hearing about.
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#4 jaspers

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Posted 03 May 2012 - 10:21 AM

Whenever I log into my NatWest account online, for my current account in the first column it says 'amount available', which includes a £5000 unasked for overdraft facility.When I first logged on I thought I was considerably richer than I was until 0.5 sec later when I realised what they'd done!
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#5 Sour Mash

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Posted 03 May 2012 - 11:51 AM

http://www.dailymail...-base-rate.html



So the Wail goes for interest only overdrafts....

Don't use your overdraft unless it is an emergency, too many people for too long have lived in them.

I know of people who see the overdraft as "their" money which needs to be spent.


It seems to be an increasingly common trait amongst the ever more fiscally illiterate public to see accessible credit (overdraft facility, credit card limits, credit deals) as being equivalent to actually having a positive balance in your bank account.

Then again, they may have the last laugh if the whole thing really goes south.

Plus ça change, plus c'est la même chose

#6 Monkey

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Posted 03 May 2012 - 12:42 PM

i live in my overdraft, its only £100 but what i do is pay it off every month, i take my money out of my current account when i'm paid, minus paying off over draft and put it in to a savings account, which at 2.**% is earning me considerably more interest than leaving it in my current account. and as the overdraft is normally for less than 15 days the interest incurred is considerably less than what i will earn on the money being in my savings account.

my overdraft cost me £0.19p for the fisical year 2011/2012 in interest etc.

#7 Brave New World

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Posted 03 May 2012 - 12:50 PM

Seeing this with trying to take out a personal loan for a car at the moment. Don’t have any credit cards and £125 of outgoings (away from rent) on easily above average salary but getting quoted 14-19% over 6 years!

#8 mfs1959

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Posted 03 May 2012 - 12:53 PM

Since the banks are restricted with the charges they can now levy for unauthorised and excess use of an overdraft facility then they have to make their money in a more obvious way.

#9 mfs1959

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Posted 03 May 2012 - 12:55 PM

Seeing this with trying to take out a personal loan for a car at the moment. Don’t have any credit cards and £125 of outgoings (away from rent) on easily above average salary but getting quoted 14-19% over 6 years!


If they cannot make money by selling PPI then they have to be above board and charge higher interest rates.

#10 South Lorne

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Posted 03 May 2012 - 01:28 PM

http://www.dailymail...-base-rate.html



So the Wail goes for interest only overdrafts....

Don't use your overdraft unless it is an emergency, too many people for too long have lived in them.

I know of people who see the overdraft as "their" money which needs to be spent.


...well somebody has to pay for the low mortgage rates and bad debts ...and the High Street Banks' Directors' bonuses....can't come out of thin air can it...?....oh and of course they keep the rates for those savers low ....just to ensure next years bonus is on track ...bottom line losses or not.... :rolleyes:
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#11 alexw

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Posted 03 May 2012 - 03:26 PM

If they cannot make money by selling PPI then they have to be above board and charge higher interest rates.


Or perhaps, just perhaps they can lower bankster pay levels and the degree to which they are looting our society?

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Or is that an insane suggestion because they are supremely skilled and intelligent, veritable Übermensch just as the nazi's talked about, and i'm just posting the 'politics of envy'™?

#12 Englebert

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Posted 03 May 2012 - 03:27 PM

Financially literate or not, the bottom line is that the Financial Services - the banks - in this country have got the economy by the BALLS. There will never be a true recovery unless there is a debt write off. Don't ask me how this can be achieved fairly - I don't know if it is possible. What I do know is that less money in people's back pockets means absolute stagnation in most aspects of the economy and consequently, people's lives. The number of people I know with debt management plans is staggering. These are people without houses...they are not rich by any means. The best thing they did was to say 'screw you' to the financial slavery. They are much happier nowadays. So I think the banks can put up overdraft rates as much as they want because, ultimately, sooner or later, their 'customer' will just walk away.

#13 OnlyMe

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Posted 03 May 2012 - 03:31 PM

Financially literate or not, the bottom line is that the Financial Services - the banks - in this country have got the economy by the BALLS. There will never be a true recovery unless there is a debt write off. Don't ask me how this can be achieved fairly - I don't know if it is possible. What I do know is that less money in people's back pockets means absolute stagnation in most aspects of the economy and consequently, people's lives. The number of people I know with debt management plans is staggering. These are people without houses...they are not rich by any means. The best thing they did was to say 'screw you' to the financial slavery. They are much happier nowadays. So I think the banks can put up overdraft rates as much as they want because, ultimately, sooner or later, their 'customer' will just walk away.



I see this happening too, how can there be any stigma in telling the banks to screw themselves after watching the way the banking scum behave when given hundreds of billions of taxper's money directly and indirectly through QE and inflation - if yo don;t have savings and anything to lose taking them to the cleaners time and again has got to be the way to do. The central baks talk about moral hazard, they are a fountain of it and are utterly clueless about the damage they have doen to this country and the population as a whole.
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For those who wonder where this trend will lead, we offer a guess: The average American will be left with a shoeshine kit and instructions on how to say 'please' and 'thank you' in Chinese...."

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#14 Venger

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Posted 03 May 2012 - 07:36 PM

Financially literate or not, the bottom line is that the Financial Services - the banks - in this country have got the economy by the BALLS. There will never be a true recovery unless there is a debt write off. Don't ask me how this can be achieved fairly - I don't know if it is possible. What I do know is that less money in people's back pockets means absolute stagnation in most aspects of the economy and consequently, people's lives. The number of people I know with debt management plans is staggering. These are people without houses...they are not rich by any means. The best thing they did was to say 'screw you' to the financial slavery. They are much happier nowadays. So I think the banks can put up overdraft rates as much as they want because, ultimately, sooner or later, their 'customer' will just walk away.


Actually it means deflation. And there can't be write offs, when people are still trying to buy poncey status cars and considering 6 year loans.

Not when I've denied myself that, totally flush, and am positioned to buy some nice status car when more people are forced to sell them cheap to raise money.

The bad money has to make way for the good money. Not more credit for those in the hole, and keeping them in houses they shouldn't be in, prices having been prevented from crashing, whilst good/smart money is in rented.

#15 zebbedee

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Posted 03 May 2012 - 08:07 PM

My overdraft rate is 0%, O' wait a minute I don't spend money I don't have and will have to pay back more on than I spent thus reducing future spending capacity. Hows about this people count up what they earn and all their necessarily expenditure, housing, heating, food and clothing, see whats left and only spend that on crap. If they are in debt they can use whats left to pay off the debt and then have the interest payments extra each month. A novel idea I know but thought I'd put it out there.
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"Credit is indeed vital to an economy, but it does not constitute an economy within itself. ... When businesses borrow to fund capital investments, the extra cash flows that result are used to repay the loans. When individuals borrow to spend, loans can only be repaid out of reduced future consumption."-Peter Schiff, Jan 19 2009; <a href="http://www.321gold.c...iff011909.html" My link

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