From an email just received:
In response to upcoming changes to the Banking Code of Practice that affect how we deal with informal overdrafts, from 12 February we're no longer allowing Orange Everyday accounts to be overdrawn.
I found it to be a very useful feature. I'm very disappointed.
Introduction of 'basic accounts' with minimum features (including no account keeping fees, no minimum deposits, free direct debit facilities and access to a debit card);
that sounds promising
who want and have been using this feature? i dont.
in case you forget to put money in your account. i've used it many times. it could be overdrawn up to $200 and you had 3 days to pay it off interest free
You actually had 3 total days your account could be overdrawn total in a month.
So if it took you 2 days first time then second time you only had 1 day before interest was applied.
dunno. now it is 10% interest :(
glad it's gone, if you get to the point of struggling for money overdrafts are evil. ING'S was half useful with foreign atm withdrawals though.
There you go. Never knew this existed. I suppose you don't miss what you never knew you had.
Just get a credit card?
Wouldyoulikesomecreditcard?
no, you can't normally overdraft using credit (though it is possible). it's for direct debits
in fact i like visa direct debit cards because i can zero the account balance and any unexpected authorisation attempts will be declined.
Thanks ACCC. Its good to see them tackling the non issues once again.
Every transaction that was more than I had on Orange Everyday was always declined. Do you have to ask ING to enable overdrawing?
No, for small amounts it just happens.
How small?
The smallest I got declined was probably $30, while I had $5 left in my account.
ive had amounts around $10 in negative. So when a auto deduction occurs and I was short $8 or something, it just deducted as usual and I was in negative. And whenever I see it I just transfer over so im back in the +
A lot of it is based on recent activity on the account.
If you didn't have your main wage going in etc they were unlikely to approve to overdraw the account
I had mine go over -200aud when a company double charged me.
It's still possible to overdraw this account. I have had it happen a few times moving the exact money over for an atm transaction and ING not rebating the foreign atm fees like it should.
It’s not just ING.
It’s every single bank in Australia.
New rules mean banks are not allowed to “informally overdraw” savings accounts.
https://www.accc.gov.au/media-release/banking-code-changes-t…
https://www.minterellison.com/articles/asic-changes-to-banki…
What has changed?
New Code requirements include:
Prohibiting charging default interest on distressed agricultural loans while farms are affected by drought or natural disaster;
Providing inclusive and accessible banking services to those with limited English and those living in remote areas;
Removing informal overdraft and dishonour fees on basic, low or no fee accounts for concession card holders;
Introduction of 'basic accounts' with minimum features (including no account keeping fees, no minimum deposits, free direct debit facilities and access to a debit card);
Clarifying restrictions on non-monetary defaults on small business loans (including a requirement to provide a notice specifying grounds of non-monetary default and specifying a reasonable time period for it to be remedied);
and
Extending protections to guarantors of small business loans (e.g. requirement for bank to pursue the borrower before the guarantor, which previously only applied in relation to consumer loans).