Lloyds and Halifax customers face up to 52% APR overdraft fee - The Guardian


(Tom ) #1

(Josh Bray) #2

I think it’s a rather misleading title. Overdrafts aren’t there for long term borrowing. They are supposed to be there as a temporary buffer. If someone’s got a constant balance on their overdraft they are better using a personal loan or something like that.
Just my personal opinion


(Alex Sherwood) #3

That’s what the banks say. But it doesn’t stop them offering some customers far more than they can pay back quickly & they know that, based on salary vs average monthly spend.

If the banks care about their customer’s financial wellbeing they should be offering those products instead of increasing their customer’s overdraft, in my opinion. But of course, that would be less profitable.


(Sacha) #4

Strikes me as a positive step, making a charge proportional to the amount it is used. The only issue I would have is the 52% APR. By all means have risk-based pricing but that seems extremely high as the effective APR that most customers will have to pay.