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46,450,869%: That's What Some Banks Will Charge If You Go Overdrawn This Christmas

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http://www.dailymail.co.uk/news/article-1330383/46-450-869--Thats-banks-charge-overdrawn-Christmas.html

With payday loans, borrowers pay a one-off fee, often around £25 for every £100 they borrow, and agree to repay the cash when they are paid. The loan can be in your bank account within 15 minutes of making an application.

Our investigation found that customers of Lloyds, which is 41 per cent owned by the taxpayer, would face charges of £85.95 over ten days. This is made up of eight daily charges of £10, a £5 ‘usage fee’ and 95p interest. In total, these fees are equivalent to an APR of 46,450,869. An APR shows the full cost of borrowing if the pattern continued for a full year.

In practice, Lloyds says that noone would pay this annually because charges are capped at the £85 level every month. At Santander, a £200 unauthorised overdraft could cost you £60.68. This would give an APR of 1,586,122 . Cheapest is Barclays, which charges £8 for a £ 200 unauthorised overdraft for ten days.

By comparison, loan companies Payday Express, Payday Financial and Payday UK charge £50 — an APR of 344,521.

Still if you loved someone you'd go into debt for them, it is Christmas after all.

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http://www.dailymail.co.uk/news/article-1330383/46-450-869--Thats-banks-charge-overdrawn-Christmas.html

Still if you loved someone you'd go into debt for them, it is Christmas after all.

I'm a bit of a Scrooge at Christmas when it comes to spending. I think the spending side of Christmas is a bit of a sick joke, really. One does not need to lavish gifts to enjoy the true spirit of it, but human beings in the west have been programmed otherwise.

Sad state of affairs really. People, with the best of intentions, give everything they can, and the banks, well, I'd better not go there.

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I'm a bit of a Scrooge at Christmas when it comes to spending. I think the spending side of Christmas is a bit of a sick joke, really. One does not need to lavish gifts to enjoy the true spirit of it, but human beings in the west have been programmed otherwise.

Sad state of affairs really. People, with the best of intentions, give everything they can, and the banks, well, I'd better not go there.

For quite a few years have been doing secret Santa (but it is not secret) for all family adults (apart from DH, DW, or DOH :lol:) ...spend up to around £25...only one present to buy and everyone gets something. ;)

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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