In marginal cases yes ... If you have a standard Barclays current account, and daft enough to go £16 overdrawn for a year you'd pay (365*0.75)/16 = 1710% of course they call it a daily fee not an interest rate.
oh scratch that, they charge for a maximum of 7 days each month, so
(12*7*0.75)/16 = 393%
I don't know if I can keep repeating myself. a payday loan at 500% apr for a a week or two is much less damaging and less expensive than letting conventional banks, credit cards and utility companies fleece you with late penalties, unauthorised od fees, increased rates, bad credit scores etc. It might be suprising to you and me but for people who struggle on low wages it's just part of life. TW
I'm not saying it's a good idea, just that that is why there is a market for payday loans. TW
They all have to provide the figures, maybe you haven't looked/noticed?
Does that take into account the monthly cap on fees? Also that you have to do four unauthorised transactions to get to that cap? So £16 + £1 + £1 + £1 to get the worst rate?
Apples and oranges. If you are the sort of person that is going to continue to make unauthorised payments from your current account you aren't going to pay the "wonga" loan back and stop borrowing.
Only an idiot would make continuous payments in an unauthorised manner without phoning the bank and getting it authorised. The same sort of idiot that borrows from "wonga" to pay "wonga".
At least the bank would stop their card at some point.
I have never seen APR to include the amounts of fees and other payments for an bank overdraft or mortgage.
Yes I have looked, clearly you haven't.
The likes of Wonga have to include their fees in the APR calculation. I suspect you haven't noticed that either?
In article , "Dave Plowman (News)" writes
An unauthorised overdraft means in effect you are helping yourself to someone else's money.
In article , "Dave Plowman (News)" writes
But you own a BMW, one of the makes I have never bought as they are absolute s**te. Like driving around in a bath tub.
I don't own a BMW.
The last BMW I had was reckoned by most authorities to be the finest car in its class when released. And for once I agreed with them.
But describing near any car as a 'bathtub' when you bought a vehicle designed just after WW2 and never meant to be used as a car anyway says it all.
[...]
This could be entered in the 'stupidest post of the year' comp.
You seem to imply it's some kind of theft. Way off the mark and not very nice.
Besides overdrafts are repayable on demand, so the bank can just declare your arranged overdraft to be 'unauthorised' double the rate and start slapping penalty charges on your stos to increase it further. Is that 'helping yourself to someone else's money' Yes, the bank is doing it. tw
Not at all. While the bank may not have specifically authorised the the overdraft, they are fully in control of whether they allow you to have it or not.
Do you want to name a bank that has done that to anyone you know? Its in the terms and conditions so that they can get their money back if you decide to close the account not to just put the charges up for customers.
You are of course wrong as the banks and building societies do have to include the fees.
I once went overdrawn with RBS and according to them for around £3 for 2 days and the penalties reached around £50.
It took a while to get this money back and to persuade them that I had a "free" £200 overdraft facility on my account. The local branch refused to acknowledge that my on-line bank statements for many years actually stated that I had this facility and it had been automatically enabled. They also refused to acknowledge that interest was paid on the account even though the statements carried the word "interest account" and a recent interest payment was shown in the statement.
I no longer bank with RBS. However there were other issues with them such as issuing multiple replacement debit cards but voiding them before I could use them.
They are all much of a muchness. Worth having a small overdraft facility even if you never expect to use it to avoid being stung for unauthorised overdraft fees (ISTR £12 for every letter they send and £3/day or something even if the account is overdrawn by a couple of quid).
RBS have become a toxic brand with their now infamous Global Restructuring Group and selling SME's dodgy rate-hedging bets.
It won't be long before that brand vanishes forever and good riddance.
I hope that the business owners whose lives they wrecked do eventually get some compensation (unfortunately it will be the taxpayer who pays). That is the trouble with banks - they are too big to fail and play a heads we win and tails you lose game with their customers.
Is the same kind of 'win' people have when they get their money back with a £2 win on a ticket costing £2?
I wonder if the odds on a win on lottery scratch cards stated as, say,
2.65:1 include those wins where the amount is equal or less then the stake?
yes in gambling any money you recieve is classed as a win and they can incl ude that in the odds especailly with scratch cards if you buy a £2 car d and win 50p that is classed as a win, and is included in the odds calcula tion which is why such things are classed as fixed odds.
Yes they do, look in the T&Cs.
Ah - right. Spending 2 quid to get 50p back is classified as a win. No wonder I don't gamble. ;-)
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