Why can't banks supply a real-time balance?

staffie1 · 28 November 2009 at 8:52PM

There is of course something OP can do for herself rather than expecting the bank to manage her finances for her: agree a small overdraft facility with the bank, then if, due to a small miscalculation, oversight or error she does dip into the red, there will be no unauthorised O/D charges, only interest on the money borrowed for the time she spends in the red.

I realise we are living in the 21st century, and with the technology we have it should be possible for everything to update instantly, but we don't live in an ideal world and there's nothing we can do about it, so we just have to find ways to get by in life.

euronorris · 28 November 2009 at 8:55PM

staffie1 wrote: »

I realise we are living in the 21st century, and with the technology we have it should be possible for everything to update instantly, but we don't live in an ideal world and there's nothing we can do about it, so we just have to find ways to get by in life.

Not true. There is something we can do about it. We can start asking more probing questions to the banks as to why it hasn't been implemented here, when it has in most other European countries. What's stopping them?

Just because it wouldn't be easy, doesn't mean we shouldn't try or that we should just accept it.

If we all took that attitude we'd never have progressed as far as we have.

staffie1 · 28 November 2009 at 8:59PM

euronorris wrote: »

Nonsense!

They do it here!

Today for example:

Food shopping delivered. Paid for by card upon delivery.

Then logged online to check balance half hour later, transaction already showing.

Partner then transfers me some money for the shopping and a book. I click refresh (literally) and the money is there.

Please, explain to me, why this would be sooo hard for the banks to implement in the UK?

Answer: it isn't hard, but they make more profit the way things currently are. They do not want people to be good with their money as that would you reduce their income.

Unfortunately, such an attitude has only lead to a financial breakdown in the UK.

Agree with you, but look at it another way...if we (i.e. everyone) start taking some responsibility and living within our means, we can view the horrendous charges as a motivator to stop overdrawing our accounts. What I would hope will come out of the recent credit crisis is that people will now start to learn that it's OUR responsibility to manage our financial affairs properly instead of not worring about it and thereby allowing the banks to rip us off.

staffie1 · 28 November 2009 at 9:04PM

euronorris wrote: »

Not true. There is something we can do about it. We can start asking more probing questions to the banks as to why it hasn't been implemented here, when it has in most other European countries. What's stopping them?

Just because it wouldn't be easy, doesn't mean we shouldn't try or that we should just accept it.

If we all took that attitude we'd never have progressed as far as we have.

What's stopping them is that it doesn't suit them - because they make money out of it. I'm sure people have asked such questions but have the banks listened? Nope, and that's because the people in this country have no power over large institutions. It will take government or FSA rules / laws to make them change and if we wait for that we'll wait for years. Much more effective and quicker for us to manage our money properly so that we don't have to incur the charges.

euronorris · 28 November 2009 at 9:09PM

staffie1 wrote: »

Agree with you, but look at it another way...if we (i.e. everyone) start taking some responsibility and living within our means, we can view the horrendous charges as a motivator to stop overdrawing our accounts. What I would hope will come out of the recent credit crisis is that people will now start to learn that it's OUR responsibility to manage our financial affairs properly instead of not worring about it and thereby allowing the banks to rip us off.

Agree to an extent, but they also don't have high charges here. Just interest applied to the amount. Although it's rare for this to even occur, as the system is set up to try and make sure it doesn't happen. Despite there not being charges, the country has a far lower debt per household than the UK. By some 30k!

Also, the way the charges are applied mean that those on a very tight budget, are taken into a spiral of debt which they cannot get out of as they cannot afford to repay at the same level as the charges are being applied. Charge is applied to charge to charge to charge and interest etc. And the banks are so reluctant to agree to putting a stop on the account and agreeing a repayment plan. As if continuously applying charges will ensure that the customer magically finds the money to pay it off. It is sooo illogical it is beyond belief!

It is based far too much on decisions made by computers, rather than human beings applying common sense.

euronorris · 28 November 2009 at 9:11PM

staffie1 wrote: »

What's stopping them is that it doesn't suit them - because they make money out of it. I'm sure people have asked such questions but have the banks listened? Nope, and that's because the people in this country have no power over large institutions. It will take government or FSA rules / laws to make them change and if we wait for that we'll wait for years. Much more effective and quicker for us to manage our money properly so that we don't have to incur the charges.

They haven't listened yet! That doesn't mean that they, the FSA and government won't sit up and take notice if enough people complain for long enough. Particulalry if it's done close to an election!

We have power, we just neglect to use it and trust those in power far too much.

euronorris · 28 November 2009 at 9:13PM

Oh also, I don't disagree that, for most people some effective budgeting would go a long way to resolving their problem.

But for those already in an unmanageable debt cycle, this is far more difficult to implement when it shouldn't be. The banks need to be more co-operative in resolving such debt situations. After all, it would be better for them to get their money paid over a longer period, than not at all, or only receiving a fraction of it.

staffie1 · 28 November 2009 at 9:22PM

So how can we get together as a nation of consumers and shout loud enough to make the government act?

euronorris · 28 November 2009 at 9:29PM

That's a good question.

I think a good place to start is if we all started writing to our MP's and to the PM. Ask them for a face to face meeting to discuss it. Or a town/city/village 'question time' type meeting.

If we all started doing that, in combination with writing to the press and gaining publicity about it, the government would start taking notice.

Particularly if we also appealed to opposing parties to include such reforms in their manifestos, close to election time.

They aren't going to change if we sit back and do nothing.

euronorris · 28 November 2009 at 9:33PM

I must state that everything should be done peacefully and with respect for the system. We just need to exercise our rights in order to make it work for us.

But, for all we know, the government may be looking at reform in light of the bank charges case and financial issues we face as a country. They may already be looking to other countries and asking; what do they do well? what knowledge can we gain from them and implement here to improve things?

I sincerely hope so. Otherwise, we have a government that thinks throwing money at the problem for long enough will resolve it. And then we have a far bigger problem!

Why can't banks supply a real-time balance?

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