7 ms·

Wouldn't that be covered under deposit insurance?

by alex_anglin 10y ago

smcl 10y ago
Right, but until that insurance pays out you're maybe faced with a bill you cannot pay in the meantime.
- Cthulhu_ 10y ago
  I'm sure the creditors would be lenient if you can prove this incident complicated things for you.
  - DavidHm 10y ago
    Can't tell if this is sarcasm. Then again, maybe I am overly cynical. UK utilities at least do seem to have a more positive approach towards people struggling to pay than other countries.
    - noir_lord 10y ago
      Aye, it's one of the (very) few good things you can say about them (generally).
  - smcl 10y ago
    To some degree you're right - if you've got a landlord you need to pay or a utilities provider (assuming you're not horrendously behind already) then sure, but it'd depend on the creditor. I suspect these lads wouldn't be particularly sympathetic, for example: https://www.eveningtelegraph.co.uk/2015/11/24/warning-of-loan-sharks-operating-in-deprived-areas-of-dundee/ https://www.eveningtelegraph.co.uk/2015/11/24/warning-of-loa...
- mjpa 10y ago
  One would hope Tesco would cover any costs incurred by customers that are a direct result of this. I know banks in the past have cancelled non-arranged overdraft fees when they've screwed up, but that's easier to do as it's cancelling a charge rather than actually paying money out.
  - smcl 10y ago
    One would hope, but again time is a factor. I've had a weird "I'll be OK soon but for now I'm in trouble" situation before with Bank of Scotland back when I was a student. BOS randomly decided overnight that instead of having an agreed-upon student overdraft limit of GBP 2000 I had none whatsoever and needed to start paying them the full balance immediately. Eventually this was resolved, but for four days I was unable to pay rent or buy food. I was extremely lucky I had friends/family I could rely on in the meantime and that it was resolved so quickly, others may not be so lucky. I am astonished how many people in this discussion are completely unaware of the idea that some people aren't as lucky as us and work paycheque-to-paycheque. I know HN/SV is a bubble, but surely we're not so out of touch with reality...
    - ddmf 10y ago
      I had a very similar experience with BOS back in the early '90s. And you're spot on - there are so many people juggling these financial balls that one slip up can cause issues for years.
laumars 10y ago
He'll get the money back. There's no doubt about that. The stress is more about not knowing how long it will take nor whatever complications may arise while this is all getting sorted. Also Tesco Bank's (understandably) busy customer services aren't helping peoples stress levels either.
- joering2 10y ago
  In terms of your first $100k insured in US bank via FDIC (above that you have to have personal insurance which is very expensive), it might take even 15 years to recover your funds, depending on complexity of claims and number of different instruments that bank has offered to its clients. For example, there are still open and active claims in case of NextBank that has been shut down in 2002, and had some updates on status done in early 2015, some 13 years later [1] Personally I suggest keeping 70% of your financial assets in cash in safe at home, preferably split into 20% in low-volume silver coins (80% silver) and 20% in foreign currency (EUR) and the rest in USD. [1] https://www.fdic.gov/bank/individual/failed/banklist.html https://www.fdic.gov/bank/individual/failed/banklist.html
  - kevin_thibedeau 10y ago
    FDIC is now $250K PER bank. You just have multiple accounts across a few banks until your wealth is so much that that becomes unmanageable and then you just hand it over to the Berkshire Hathaways of the world.
  - sushid 10y ago
    Seriously? You'd suggest one keeps 70% of their liquid asset in _cash_ at home? Yes, if you're living during the Great Depression perhaps but your suggest is ludicrous. Maybe a few percentage points in crypto and cash, but most of it should be in your bank/investment accounts.
    - joering2 10y ago
      Bank and investment accounts will yeld you single-digit points per year and in most cases - unless you have few MM, the cost of your bank account will be more than what you earn. Meanwhile banks wage war on cash. Its harder and harder to withdraw your own money. Here, try and show up at your bank say you need $150,000. They tell you to come back in few days, and in some cases they will ask you to fill out the form and explain yourself why you want to withdraw your own money. If you do not live in a reasonably safe neighborhood, plus do not owe an alarm system, plus do not owe a safe, plus do not awe a firearm, then yes the bank is your best friend. Other than that no reason to keep some federal paper at someone's else possession at their disposal for a mere 0.5% per year. You don't gain anything and in some cases, you might lose some or all of it (yes extreme scenarios but always) Here few articles to continue... http://dailycaller.com/2014/01/29/bank-refuses-to-give-customers-their-money-unless-they-can-prove-a-good-reason-for-needing-it/ http://dailycaller.com/2014/01/29/bank-refuses-to-give-custo... http://thefreethoughtproject.com/feds-banks-inform-law-enforcement-customers-depositingwithdrawing-5000-cash/ http://thefreethoughtproject.com/feds-banks-inform-law-enfor... http://www.bbc.com/news/business-25861717 http://www.bbc.com/news/business-25861717 and here this one quick very informative read: http://www.rd.com/advice/saving-money/secrets-bank-teller-wont-tell-you/ http://www.rd.com/advice/saving-money/secrets-bank-teller-wo... ps. in all fairness I would say keep 70% in gold or silver, but over the years this commodity has been shifted between the countries in such huge quantity (government buy/sell-outs), that the price is dictate by which country has specific political system and how much PM they owe, rather than true market price. Unless you can predict you won't need to turn your PM into cash within next 5-10 years, which is hard calculation for anyone these days.
dogma1138 10y ago
Tesco is a bank for effectively the working poor, young and migrant workers that cannot open an account at a normal highstreet banks. These are people who may have to pay rent more than once a month, have direct debits for bills and more likely than not not have an overdraft over 100£ if at all. If your bills bounce you will end up with fines, and even a lower credit score than the one which prompted you to open an account with Tesco in the first place.
- threesixandnine 10y ago
  I came to the UK in June this year. Both me and my wife moved because of the job. We are from another EU country. What's interesting is that I signed us up for Tesco bank account but we were both rejected. Probably because we didn't have any history in UK yet but it still kind of sucked - now I am glad they rejected us. Ultimately the next day we went to red and blue US bank on the high street and got it all sorted within half an hour. We showed them contracts, documents and bills to our names (real estate agency through which we rent already sorted that out for us before we came) and we were done. Got our cards made at the spot as well. So it was kind of the opposite for us. We could't get the bank account with Tesco because of their "security check" but could at the high street bank.
  - katpas 10y ago
    I think you're talking about Metro bank? I know they're literally on the high street but they're meant to be a bit more innovative/useful when you actually go into a branch. I normally use the phrase 'High Street bank' to mean those that have a branch on most high streets and range from unhelpful to really unhelpful. That's useful to know that Metro bank are living up to a different reputation.
  - Symbiote 10y ago
    Note that Metro Bank is a British bank, though there is an American bank with the same name and the better Internet domain. As far as I know, they're not related.
    - 10y ago

Wouldn't that be covered under deposit insurance?

smcl 10y ago

Right, but until that insurance pays out you're maybe faced with a bill you cannot pay in the meantime.

Cthulhu_ 10y ago
I'm sure the creditors would be lenient if you can prove this incident complicated things for you.
- DavidHm 10y ago
  Can't tell if this is sarcasm. Then again, maybe I am overly cynical. UK utilities at least do seem to have a more positive approach towards people struggling to pay than other countries.
  - noir_lord 10y ago
    Aye, it's one of the (very) few good things you can say about them (generally).
- smcl 10y ago
  To some degree you're right - if you've got a landlord you need to pay or a utilities provider (assuming you're not horrendously behind already) then sure, but it'd depend on the creditor. I suspect these lads wouldn't be particularly sympathetic, for example: https://www.eveningtelegraph.co.uk/2015/11/24/warning-of-loan-sharks-operating-in-deprived-areas-of-dundee/ https://www.eveningtelegraph.co.uk/2015/11/24/warning-of-loa...
mjpa 10y ago
One would hope Tesco would cover any costs incurred by customers that are a direct result of this. I know banks in the past have cancelled non-arranged overdraft fees when they've screwed up, but that's easier to do as it's cancelling a charge rather than actually paying money out.
- smcl 10y ago
  One would hope, but again time is a factor. I've had a weird "I'll be OK soon but for now I'm in trouble" situation before with Bank of Scotland back when I was a student. BOS randomly decided overnight that instead of having an agreed-upon student overdraft limit of GBP 2000 I had none whatsoever and needed to start paying them the full balance immediately. Eventually this was resolved, but for four days I was unable to pay rent or buy food. I was extremely lucky I had friends/family I could rely on in the meantime and that it was resolved so quickly, others may not be so lucky. I am astonished how many people in this discussion are completely unaware of the idea that some people aren't as lucky as us and work paycheque-to-paycheque. I know HN/SV is a bubble, but surely we're not so out of touch with reality...
  - ddmf 10y ago
    I had a very similar experience with BOS back in the early '90s. And you're spot on - there are so many people juggling these financial balls that one slip up can cause issues for years.

laumars 10y ago

He'll get the money back. There's no doubt about that. The stress is more about not knowing how long it will take nor whatever complications may arise while this is all getting sorted. Also Tesco Bank's (understandably) busy customer services aren't helping peoples stress levels either.

joering2 10y ago
In terms of your first $100k insured in US bank via FDIC (above that you have to have personal insurance which is very expensive), it might take even 15 years to recover your funds, depending on complexity of claims and number of different instruments that bank has offered to its clients. For example, there are still open and active claims in case of NextBank that has been shut down in 2002, and had some updates on status done in early 2015, some 13 years later [1] Personally I suggest keeping 70% of your financial assets in cash in safe at home, preferably split into 20% in low-volume silver coins (80% silver) and 20% in foreign currency (EUR) and the rest in USD. [1] https://www.fdic.gov/bank/individual/failed/banklist.html https://www.fdic.gov/bank/individual/failed/banklist.html
- kevin_thibedeau 10y ago
  FDIC is now $250K PER bank. You just have multiple accounts across a few banks until your wealth is so much that that becomes unmanageable and then you just hand it over to the Berkshire Hathaways of the world.
- sushid 10y ago
  Seriously? You'd suggest one keeps 70% of their liquid asset in _cash_ at home? Yes, if you're living during the Great Depression perhaps but your suggest is ludicrous. Maybe a few percentage points in crypto and cash, but most of it should be in your bank/investment accounts.
  - joering2 10y ago
    Bank and investment accounts will yeld you single-digit points per year and in most cases - unless you have few MM, the cost of your bank account will be more than what you earn. Meanwhile banks wage war on cash. Its harder and harder to withdraw your own money. Here, try and show up at your bank say you need $150,000. They tell you to come back in few days, and in some cases they will ask you to fill out the form and explain yourself why you want to withdraw your own money. If you do not live in a reasonably safe neighborhood, plus do not owe an alarm system, plus do not owe a safe, plus do not awe a firearm, then yes the bank is your best friend. Other than that no reason to keep some federal paper at someone's else possession at their disposal for a mere 0.5% per year. You don't gain anything and in some cases, you might lose some or all of it (yes extreme scenarios but always) Here few articles to continue... http://dailycaller.com/2014/01/29/bank-refuses-to-give-customers-their-money-unless-they-can-prove-a-good-reason-for-needing-it/ http://dailycaller.com/2014/01/29/bank-refuses-to-give-custo... http://thefreethoughtproject.com/feds-banks-inform-law-enforcement-customers-depositingwithdrawing-5000-cash/ http://thefreethoughtproject.com/feds-banks-inform-law-enfor... http://www.bbc.com/news/business-25861717 http://www.bbc.com/news/business-25861717 and here this one quick very informative read: http://www.rd.com/advice/saving-money/secrets-bank-teller-wont-tell-you/ http://www.rd.com/advice/saving-money/secrets-bank-teller-wo... ps. in all fairness I would say keep 70% in gold or silver, but over the years this commodity has been shifted between the countries in such huge quantity (government buy/sell-outs), that the price is dictate by which country has specific political system and how much PM they owe, rather than true market price. Unless you can predict you won't need to turn your PM into cash within next 5-10 years, which is hard calculation for anyone these days.

dogma1138 10y ago

Tesco is a bank for effectively the working poor, young and migrant workers that cannot open an account at a normal highstreet banks. These are people who may have to pay rent more than once a month, have direct debits for bills and more likely than not not have an overdraft over 100£ if at all. If your bills bounce you will end up with fines, and even a lower credit score than the one which prompted you to open an account with Tesco in the first place.

threesixandnine 10y ago
I came to the UK in June this year. Both me and my wife moved because of the job. We are from another EU country. What's interesting is that I signed us up for Tesco bank account but we were both rejected. Probably because we didn't have any history in UK yet but it still kind of sucked - now I am glad they rejected us. Ultimately the next day we went to red and blue US bank on the high street and got it all sorted within half an hour. We showed them contracts, documents and bills to our names (real estate agency through which we rent already sorted that out for us before we came) and we were done. Got our cards made at the spot as well. So it was kind of the opposite for us. We could't get the bank account with Tesco because of their "security check" but could at the high street bank.
- katpas 10y ago
  I think you're talking about Metro bank? I know they're literally on the high street but they're meant to be a bit more innovative/useful when you actually go into a branch. I normally use the phrase 'High Street bank' to mean those that have a branch on most high streets and range from unhelpful to really unhelpful. That's useful to know that Metro bank are living up to a different reputation.
- Symbiote 10y ago
  Note that Metro Bank is a British bank, though there is an American bank with the same name and the better Internet domain. As far as I know, they're not related.
  - 10y ago