The possible direction of new regulations for overdraft
protection was indicated in a letter last fall from Rep.
Customers do not get charged by more than they go over their authorised overdraft
limit by, so for example if they only dip into an unauthorised overdraft
by PS15, this is the maximum that they will be charged for doing so, even if the customer remains over this limit for more than three days.
Now as this isn't a debt shifting card, you have to play clever and be disciplined to take advantage of it for reducing overdrafts
The blow comes as the average authorised overdraft
rate on offer is at a new high, according to financial information website Moneyfacts.
Banks should be required to give consumers information on the comparative costs for other alternatives for covering overdrafts
, such as a line of credit or transfer from a credit card.
NATIONWIDE has upped the credit interest and lowered the overdraft
costs on its FlexDirect current account.
Nearly 70,000 turned to the Consumer Credit Counselling Service for help with overdraft
debt in the first half of the year, showing just how many fall into the trap.
Two per cent of all SMEs were unsuccessful with an overdraft
application, and one per cent were unsuccessful with a loan application.
The newly created Bureau of Consumer Financial Protection, as the agency in charge of writing new rules in this area, has already signaled a few areas that will be ripe for regulation, and one in particular is overdraft
Most banks offer different types of overdraft
protection services and programs.
He was speaking after a survey revealed that the average interest charged on unauthorised overdrafts
was as much as 167 per cent.
Please be aware that this notice does not constitute either a written agreement of an obligation or a prearranged agreement for Iowa State Bank & Trust to pay your overdrafts