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Handelsbanken - the Swedish for robbery

The policy of overdrafting

*myhi*
post 14.Apr.2011, 06:42 AM
Post #1


Just another funny fact... regarding my interraction (successful, so far) with the Swedish system.

I had the stupid idea to apply for an overdraft to my Handelsbanken current account; eh, it was approved almost instantly - but the bank claimed 250SEK fee plus... guess what?! They charged me the interest, 7.5%, for the rest of the year!!! Just like that.
Moreover, the Swedish bank will charge me interest everytime I touch their money - unless I put it back in the account within THE SAME DAY!
I wonder what exactly is my advantage in this deal?!

No need to tell you that even in Eastern Europe the loaning system is friendlier than that.

I wish you good luck finding a bank that values its customers - I haven't found any here, so far.
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newbluevim
post 14.Apr.2011, 06:48 AM
Post #2
Joined: 26.Aug.2006

You should have applied for a line of credit instead of an overdraft. There are no fees and there isn't anything wonky about the interest rate charged - even if it is high. You're just haven't learned how to deal with the banks here yet (I'm not saying I like bankers and think they deal fairly).

Try taking an American cashiers check to a bank in Sweden if you want to feel swindled. In the US they're better than cash because they can be verified but here banks act like it's wildcat money drawn from the First Lunar Bank of the Moon and you will be charged for the trouble they go to to handle your funny money.
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Rick Methven
post 14.Apr.2011, 06:55 AM
Post #3
Location: Linköping
Joined: 30.Nov.2005

QUOTE (newbluevim @ 14.Apr.2011, 07:48 AM) *
Try taking an American cashiers check to a bank in Sweden if you want to feel swindled. In the US they're better than cash because they can be verified but here banks act ... (show full quote)

The problem with a US bankers check is that it has to be physically sent back to the issuing bank to be redeemed which does incur costs and time. It is the US banking system which is in the dark ages when it comes to banking. I get same day value payments from my clients in Europe and the Middle East and Asia. A bank transfer from the US takes a minimum of a week
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newbluevim
post 14.Apr.2011, 07:17 AM
Post #4
Joined: 26.Aug.2006

What do you mean a week? I certainly know it costs time and money: two months and 1200 kr.

I don't believe personal checks have to be returned to the bank before money is transferred within the US anymore, yet it could take a week for "out of state" checks to clear when I was there. I'm well aware that US banks like to keep their mitts on money for as long as possible -.but it's usually not because the transfer takes time. Having often transferred money to myself I know that it just disappears for a few days before it shows up again. I don't think legal requirements for a paper trail belong to the dark ages as Europeans always love to tell Americans. The fact that US banks use that as an excuse for the time transfers take, however, is a joke.

"Free" EU-bank transfers from my spouse's Danish bank to my bank in Sweden usually cost 30 dkk and take 2-3 days - plus costs for currency conversion. I wouldn't hold up European banks as a paragon of ease and modernity when it comes to transferring money. The Danish internet bank also does not allow international transfers after 9 PM which I find very amusing.

(If you don't know, 20 years ago, banks were not allowed to operate nationally in the US. The fact that they still make you wait for things coming from "out of state" now that many banks are national is part of the joke.)
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Essingen
post 14.Apr.2011, 11:51 AM
Post #5
Joined: 2.Nov.2008

QUOTE
Moreover, the Swedish bank will charge me interest everytime I touch their money - unless I put it back in the account within THE SAME DAY!


Isn't that how interest works?

Since books have been written about Handelsbanken's legendary business model, I doubt whether they are too concerned about your issues.
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Furu
post 14.Apr.2011, 12:19 PM
Post #6
Joined: 16.Jan.2008

QUOTE (newbluevim @ 14.Apr.2011, 08:17 AM) *
I don't believe personal checks have to be returned to the bank before money is transferred within the US anymore

Not the physical check, but the image.

http://en.wikipedia.org/wiki/Check_21_Act
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kaze
post 14.Apr.2011, 12:30 PM
Post #7
Joined: 22.Mar.2008

Swedish banks are mad. In British banks you get interest for having money in them. Good times. In Swedish banks you pay to have the account. WTF?
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Essingen
post 14.Apr.2011, 02:11 PM
Post #8
Joined: 2.Nov.2008

Ugm, excuse me just one second...but you do seem to have overlooked the fact that the largest part of the Uk banking sector has just inflicted structural damage on the British economy that will take a generation to recover from whereas the Swedish banking sector has escaped virtually unscathed.
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