Extortion APR% rates for overdrafts are still in place

6
Posted 25th Mar
Just had a text to say Ive gone overdrawn and they ( nationwide) will charge me £39.9% apr for doing so. Come on! with the Bank of England reducing rates etc surely these banks and building societies should not try and profit from misfortune at this time when jobs are lost and cash is tight. Never used this in the past so quite shocked at how high these are. What can be done. Ive written to them asking them to consider these ludicrus charges at this tough time. No justification in my opinion.
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I got stung by extortionate overdraft fees when I was younger. Nowadays I just ensure my account doesn't have an overdraft facility. Problem solved
39.9% APR, how much money though?
Thing is though, there are no fees any more. This is interest. Before they would've charged you an overdraft fee if you went into an unauthorised overdraft. That would probably have cost more
I would speak to your personal manager if you have one, some are providing free overdraft for a certain amount or reduced rates.
Thank Martin Lewis he got them to abolish fees so they have to charge an interest rate now.
the banks chose circa 40%, an overdraft is repayable on demand you should not be using an overdraft for day to day banking needs.

It seems the nation has forgotten we should all have at least 3 months of savings to get through times like these.

As srb recommends speak to your bank they should be able to help, I’ve had messages from banks saying late payment fees etc are being ignored
Edited by: "whatyadoinsucka" 25th Mar
Better to arrange an overdraft than just let it happen.
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