Abbey - Changes to accounts from 1st October

[calamity jane]

Notification received today.

From 1st October, if you exceed your authorised overdraft you will be charged the Instant overdraft rate of 28.7% on the whole of the overdrawn balance.

[Paule]

Re: Abbey - Changes to accounts from 1st October

Have you got a scan of this? What else has changed?

I am presuming that they mean, anything over your agreed overdraft limit is classed as overdrawn.

Have you got the rest of the info so it can be read in context

Cheers, PKea

[calamity jane]

Re: Abbey - Changes to accounts from 1st October

Exact wording on Bank statement;

Changes to your account from 1st October 2008

We are changing the way Instant
Overdraft interest is charged to your
account.
From 1st October 2008, if you
exceed your Advance Overdraft limit,
interest will be charged on the whole
of your overdrawn balance at the
Instant Overdraft interest rate of
28.7% EAR (variable).

I took this to mean the total overdraft. At present the preferred rate for agreed overdrafts (minimum deposit £1000.00 a month) is 12.9% EAR (variable).

[julesbon70]

Re: Abbey - Changes to accounts from 1st October

Could someone start a campaign so banks cannot allow people too go over their authorized overdraft.
If you ask me banks are getting money for old rope!:tinysmile_hmm_t2:

[Celestine]

Re: Abbey - Changes to accounts from 1st October

Ahhh haaa!! A new and previously unseen species of the lesser spotted cloaked penalty.

I suspect this will become more common somehow.

Totally unfair. If I have a 2k overdraft and go £12 overdrawn....I would now be charged 29.9% on £2012 until I can get my balance under £2000 again. Thats a whole lot of extra interest.

[Tools]

Re: Abbey - Changes to accounts from 1st October

Could someone start a campaign so banks cannot allow people too go over their authorized overdraft.
If you ask me banks are getting money for old rope!:tinysmile_hmm_t2:

Hi Julesbon

The easiest way to do that is to open a basic account that has no overdraft facility etc. , alternatively open a post office account.

[Amethyst]

Re: Abbey - Changes to accounts from 1st October

Blimey thats a pretty big change.

On Cel's example thats £1.64 a day interest while unauthorised overdraft as opposed to about 70p a day. Much better than charges - but they are still doing those too. So pretty skanky IMO.