Do I really need an overdraft?
Many people in the UK will have access to "interest-free" overdrafts for which they may be charged a small administration fee on a monthly basis. However, do we really need an overdraft or is it simply a long-term extension of our own credit facilities?
The ideal of an overdraft should simply be access to emergency credit at very short notice. However, it can be very easy to fall into the trap of accumulating your overdraft facility with your income on a monthly basis to arrive at "accessible credit limits". This can often lead to situations where we fall into our overdraft facility earlier and earlier each month which can often lead to extended overdraft facilities which are often more expensive and attract higher interest rates.
Even an interest-free overdraft facility, although often very useful at the time, can be the first step towards more debt and more charges in the future. We all need to be vigilant and keep within our budgets and not automatically assume that our overdraft facilities are part of our "everyday budget". It is easy to suggest that a £100 overdraft is simple to pay back but this could become £200, £300, etc and the situation can easily get out of control.
When did you last move your bank account?
The vast majority of people in the UK are unlikely to have moved their bank accounts within the last decade and indeed many have remained with the same bank for most of their lives. However, while in the past it may have been a little difficult to transfer bank accounts, direct debits, etc, the situation has now changed and many websites now offer you the chance to move banks and they will look af...Read More
UK Banks win right of appeal regarding charges
The ongoing debacle which has seen UK banks taken to court by the Office of Fair Trading, with regards to overcharges, appears set to go on for some time yet after the banks were granted the right of appeal to the House of Lords. They are looking to appeal against a recent decision which effectively confirmed that the charges could be subject to "unfair contractual terms" laws. This had been seen...Read More
Sir Tom McKillop leaves Royal Bank Of Scotland
Chairman Sir Tom McKillop has left the Royal Bank Of Scotland three months early in light of the recent disastrous trading period. While Sir Fred Goodwin took the brunt of the criticism regarding the downfall of the Royal Bank Of Scotland, which is now majority owned by the taxpayer, Sir Tom McKillop has come in for his fair share of criticism over the last few days.
Behind the scen...
Has the HBOS bailout changed the face of UK banking forever?
While the government had little choice in reality, the nurtured takeover of HBOS by Lloyds Bank has the potential to change the face of UK banking forever and not necessarily for the good of the consumer. It is reported that one in five in the UK will have dealings with the new super bank as it pushes to the top of the UK banking tree and looks to call the shots in the future.
Bank charge case re-opens
Hundreds of thousands of bank customers will come closer to finding out whether or not they will be paid back their penalty fees this week.The High Court case looking into the charges, which are levied by banks for offences such as exceeding overdraft limits, is to hold a new three day hearing, starting today.Presiding judge, Mr Justice Andrew Smith, will then decide whether or not charges dating...Read More