Bank Overdraft charges IR vs UK

Status
Not open for further replies.
R

roker

Registered User
Messages
2,045
It was interesting to note that the OFT in the UK lost their court case against the banks on overdraft charges.
What is the situation in Ireland? The reason I ask, is that I went into my bank about two weeks ago and asked what happens if my account goes to zero, will it stop paying out. I mentioned that I did not want an unauthorised overdraft. The answer was that they cannot watch it, it will still pay and that I will go into overdraft whether I want it or not. It means that I need to keep a reasonable float in my current account to prevent paying overdraft charges. I would personally prefer the account to stops paying out, so that I can transfer savings to correct the issue. Any comments on this.
 
It is possible to get an overdraft without incurring and overdraft fee. Each bank would have t&cs but they're along the lines of 'make X transactions per month using internet banking ..'.

My wife has an overdraft with BoI and is not charged for it

You will always be liable for interest in respect of overdrawn balances, and a supplementary surcharge for balances in excess of the sanctioned permission.
 
Roker,

I think you have to take responsibility for what's in your account (or not in your account) yourself - I operate online banking and that allows me move move between accounts whenever I need to.
 
Yes it's my responsibility, when I am paid from various sources and my wife uses the account also and transactions can take days to clear, it is difficult to keep track. I only occasionally use on-line banking because of the security issues. The point of my post is; why can they not stop paying out when I have zero funds?
It’s as if they are waiting to catch me for overdraft fees.
 
The only way they could do this I suspect is that they return say cheques or direct debits unpaid - two consequences - a) they'll charge you unpaid charges and b) it may effect your credit rating.
 
So I am caught for charges both ways, if I go in to overdraft or stop payments when zero in my account. I had a UK account years ago that would transfer automatically if my current account went low below a pre-determined limit.
 
National Irish Bank dont charge fees for going into the red if you have an account opened after 18th April 2006. this includes returned payments etc, Direct Debits or Cheques returned unpaid. You will be charged interest of course but this is normal for any bank who provide lending facilities. (surcharge interest is more than the rate you would get if you had an agreement in place)
 
Status
Not open for further replies.
Menu
Log in
Register