In this modern day and age it is incredible banking customers are still charged for going overdrawn, bearing in mind that these are the very customers that wllingly and obligingly keep the banks running, for them to then charge them above and beyond what is a reasonable amount for costs that may be incurred, I find ridiculous.
Lets put this in the context it deserves, a customer of Lloyd’s TSB is charged a flat fee of £15 for being overdrawn and then a charge of £6 for every day that they are overdrawn. Now apart from being an obvious deterrent there is little substance to this charge, the bank cannot possibly justify such charges for a figure that most times does not even reach two numbers.
Another fact of this over inflated policy, that is especially frustrating, is that the bank, whichever it is, should not allow the customer to go overdrawn, and most times does not. So why is this not the rule for all situations?
As most of you will be aware this is due to certain shop card machines having some sort of delay, that means the transaction does not automatically go through then but a little later or in some cases a long time later. Is there not something that can be done about this? After all not all of us have the necessary grey matter to keep track of every time we use our pin-chip, and tend to trust the digits flashing in front of our faces at the cash robot.
Having now exceeded the allotted limit, what options do banking customers have?
If you do some quick sums, having a Lloyd’s account and going overdrawn even for a day is hitting your wallet hard, never mind a week. A good option if you can’t borrow money from friends and family is a payday loan, otherwise known as a cash advance.
These loans are designed for this exact sort of situation. The application is done online, takes 5 minutes, and if approved the funds are deposited in your account on the same day. The same day funding aspect is especially convenient as you don’t have to trudge down to your chosen bank and waste more of your time dealing with the matter.
The charges levied for such a service are not cheap, however they pale in comparison to bank charges. The loan is repaid after a month, which is usually on your next payday, however if you are paid weekly you still have the option to have the payday loan for a month, your choice.
Payday loans are also called bridging loans which sums them up perfectly. If we look at the charges for a week of being overdrawn it’s going to hit at least £50, now compare that to a payday loan at an interest rate of £25 for every £100 borrowed, as Bill Gates would say it’s a no-brainer. Also you are actually paying for a service rather than being stung for nothing more than a ridiculous charge.
So as long as banks continue to act in this unscrupulous fashion and we continue to need the bank we really have no choice, we have to put up with it, however with an instant loan we can now lessen the charges, although not ideal it is cheaper.
JPL
