Banks - Charges & Interest Rates.

[Tatts]

I'm with Lloyds, which was Lloyds TSB, which became Lloyds TSB HBOS and is now Lloyds TSB HBOS HMG & Taxpayer.....

Anyway. Lloyds TSB.

Why are banks charging such high rates for their bank loans? I'm not looking for a loan, but just had a leaflet from them, offering loans at 9.9% APR. With the BoE setting the base rate at 0.5%, how can banks be charging so much for a loan? The last loan I had finished about 3 years ago, and that was 4.9% APR. How can they justify charging so much - I thought 'they' wanted to encourage people to borrow.

Also, and this made me laugh & angry. For the first time in a decade, I went into my credit zone on my current account, by about £8 for 3 days. I've had a letter advising me that I've been charged interest. A whopping 25p. The postage cost 34p, so the bank have lost 14p. Was it really worth them writing to tell me??! It's cost them money in the end!

[baxlin]

Originally Posted by Tatts

For the first time in a decade, I went into my credit zone on my current account, by about £8 for 3 days. I've had a letter advising me that I've been charged interest. A whopping 25p. The postage cost 34p, so the bank have lost 14p. Was it really worth them writing to tell me??! It's cost them money in the end!

THEM???? Me you mean!!!!!!!

can't you be more careful with your money?

[efreeti]

HSBC have just taken £25 off me for going £18.38 overdrawn for the first time in the 6 years I have banked with them. My wage payment went in 12 hours late and crossed with an unexpected direct debit (ebay fees as it happens).

I am off to find some Basildon Bond, I feel a letter coming on!

[lady zed]

Originally Posted by efreeti

HSBC have just taken £25 off me for going £18.38 overdrawn for the first time in the 6 years I have banked with them. My wage payment went in 12 hours late and crossed with an unexpected direct debit (ebay fees as it happens).

I am off to find some Basildon Bond, I feel a letter coming on!

Phone them, they'll refund it as a 'goodwill gesture'.

Reason the interest rate is so high for loans is cos they're terrified to give any loans, so the few who are acepted pay the price. Literally.

[W953 BJX]

I went £4 odd overdrawn when I paid for the carpark while I was in hospital, didnt realise... Got the letter 4 days later telling me I'd gone overdrawn and was being charged per day, rang up straight away and whilst I understand it is easily resolved by "simply walking into any branch and depositing the outstanding amount" I was unable to stand up by myself forget about walking! So I begged and she said she'd hold any charges until the following week when I could arrange for a lift into the bank... Next week came, hobbled in, paid them the £4 and they said "don't know why she said that she'd hold the charges, she can't do that, did you record the conversation?" so that I could prove it! I was cross! Basically they agreed that she'd said that over the phone just to shut me up and make me go away, I was cross about that, I got £134 in charges for being overdrawn for 6 days

[Dragrad]

Originally Posted by W953 BJX

I went £4 odd overdrawn when I paid for the carpark while I was in hospital, didnt realise... Got the letter 4 days later telling me I'd gone overdrawn and was being charged per day, rang up straight away and whilst I understand it is easily resolved by "simply walking into any branch and depositing the outstanding amount" I was unable to stand up by myself forget about walking! So I begged and she said she'd hold any charges until the following week when I could arrange for a lift into the bank... Next week came, hobbled in, paid them the £4 and they said "don't know why she said that she'd hold the charges, she can't do that, did you record the conversation?" so that I could prove it! I was cross! Basically they agreed that she'd said that over the phone just to shut me up and make me go away, I was cross about that, I got £134 in charges for being overdrawn for 6 days

That's disgusting!!!! I'd argue the case and get your money back! Is there an Ombudsman for Banks? With a Labour Government ... there must be... Jobs for the boys, and all that!!

[W953 BJX]

I dislike banks! I work in cash as much as I can now, especially after that fiasco

[Departed]

Originally Posted by Dragrad

That's disgusting!!!! I'd argue the case and get your money back! Is there an Ombudsman for Banks? With a Labour Government ... there must be... Jobs for the boys, and all that!!

Yes but the banks pay for them. In the early days they were pretty good, but these days they are clearly on the side of the banks.

Last dealings I had with them they were too busy to deal with my complaint for 6 months, and when they finally did and agreed that the bank was at fault and in the wrong, said that I should expect to have to spend time and effort for no recompense in writing and phoning the bank, for them to ignore me.

[stocktake]

Originally Posted by Dragrad

That's disgusting!!!! I'd argue the case and get your money back! Is there an Ombudsman for Banks? With a Labour Government ... there must be... Jobs for the boys, and all that!!

There is the ongoing bank charges case working its way though the courts at the moment. Should be resolved by.................................Enter best guess here

[efreeti]

£134 for £4 overdrawn sounds illegal rather than disgusting. You should only get a one off charge of max £30 and then interest on that £4 which would only be pennies.

Unless it was some very high interest account with a special arrangement for keeping the account in credit I cannot see how they could possibly get away with that sort of thing?