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.
Complaint over Lloyds TSB cash exchange charge
A Merseyside teacher has criticised Lloyds TSB for what he sees as its excessive handling fees.Arthur Williams used a branch of the bank in West Kirby, in order to convert two £20 notes and a £10 into a new £50.This note was then to be used as a Christmas gift for his 15-year-old niece.However, the bank informed him that there would be a handling fee of £5 for the conversion - which the teache...Read More
Alistair Darling risks his political career for Scottish jobs
Alistair Darling may well be in the final throws of his time at the Treasury but he is literally risking his future political career by lobbying for HBOS jobs to be retained in Scotland. In amazing scenes we now have the Chancellor of the Exchequer lobbying for the retention of jobs in Scotland after the takeover of HBOS by Lloyds TSB. However, maybe it has something to do with the up and coming...Read More
Cashpoint heaven at Tesco
Visitors to a Tesco branch in Hounslow, Essex were this afternoon treated to a rare bonus when the Tesco cashpoint decided to double up on cash requests while only charging the original cash request. Due to "a rare operational error" the system had apparently malfunctioned and while it was only operational in this form for around 90 minutes a queue very quickly began to grow as word spread.
No Explanation Bank Account Closures ‘Unjust’
Banks that close customers’ accounts without explanation have been said to be acting against the natural rules of justice, according to the chairman of the Financial Services Authority’s Consumer Panel, Adam Phillips. However banks currently close customers’ accounts and refuse to provide an explanation upon doing so, in order to follow anti-money laundering laws. The issue was first h...Read More
Banks must do more to prevent ID theft, says regulator
Financial services firms have been urged to tighten up their security practices after a report uncovered a lax attitude to preventing identity theft. A survey of security at 39 firms conducted by the Financial Services Authority (FSA) found that around half provided no training for staff over preventing the theft of customers' details. In response, the FSA has called for banks and building societi...Read More