We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Martin on Radio 5 this morning and the banks
Options
Comments
-
I'm with the majority. I had a charge or two in the past, and I was in the worng at the time: thats what I signed up for and the lesson was learned. no point trying to blame the other party.0
-
Harry_Powell wrote: »Easiest way to avoid charges is to balance your cheque book in the first place. The fault is not with Direct Debits, it lies with the way some people run their accounts. I've used DD's for years without going overdrawn, but then I have always lived within my means.
Exactly.
If you can't live within your means then current accounts and direct debits are not for you.
Personal responsibility is a concept we need to see more of in this country.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
chucknorris wrote: »You might call it lazy but I call it efficient to pay by direct debit, why spend a lot of time writing out cheques and paying for postage or calling 08 telephone numbers every month. I might be wrong but isn't there also some financial benefit in paying some bills by dd.
Oh there definately is.
But if you don't have the money, or are unsure whether you will have the money, direct debit isn't the way to pay.
Paying by other methods will allow you around 28 days after getting the bill to pay.
If I was struggling, I would prefer the 28 days. But people say it's cheaper to pay DD. But £3 per quarter or £35 for a failed DD, I know what I would prefer!
You have just given the classic case. Can't be bothered to do it manually. But then people complain later when they are charged.
It's imple budgeting. DD is fine if you can budget. Not fine if you are working on shoestring budgets, or are having money problems.0 -
I think I may be having a moment. Are Hamish and Graham agreeing on something?
I think the underlying problem is that too many people are not well-enough informed / educated about how bank charges work. The sooner we get more financial education on the (seocndary) school curriculum the better.
It's also a bit of a fallacy to say banking is free...since banks pay almost no interest on deposits. Greater transparency is needed.18 May 2007 (start of Mortgage):
Coventry Offset Mortgage £220800
Offset Savings: £0
Mortgage Balance: £220,800
14 Jan 08
Coventry Offest Mortgage: 219002
Offset Savings: 28200
Mortage Balance: £190802
And still chucking every spare penny into it!0 -
There are really a number of factors here.
Yes, arguing that people should manage their accounts is valid.
But, if I remember correctly, one core accusation against the banks was that the charges process was a profit centre.
There is no doubt about this. Most letters sent to customers by a bank covering an excess charge are auto-generated. The costs behind this production are very small.
I wish they were just honest about this.0 -
One of the things that triggered this action was that Martin was approached by a woman whose benefit payment did not arrive in her account on the expected date. This triggered the bank to reject 7 DDs and charge her ( a benefit claimant) more than £200. This escalated to over £3000 over the next 12 months and the woman had to go bankrupt.
I agree that people who fail to manage their money correctly should not be let off the hook but the example above is sheer theft - nothing less.0 -
I just hope Martin now concentrates on educating the people who are literally frothing over on the bank charges board how to avoid charges, rather than simply how to get them refunded.0
-
The court is missing the point.
People were trapped into a downward spiral by "penalty" clauses that did not represent the costs or risk the bank facedm a downward spiral could be created. :
You went 10 p over drawn and a thirty pound charge zapped most of a 40 pound cheque you had paid in to cover a 25 quid standing order. So that bounced - more charges and the 10p mistake had you 50 quid in debt.
I have an A&L account that allows me to go modestly overdrawn and just pay a bit of interest - I've only used it once when there was a fraud problem on my credit card.
If all banks had a simple low charge buffer built in and charges that more accurately represented the risk and cost of initial overdrafts, then I don't see that anyone would have any argument legal or moral with the banks.
We all know there are lazy people out there who tend to live at other peoples expense until brought up against reality by running out of money.0 -
One of the things that triggered this action was that Martin was approached by a woman whose benefit payment did not arrive in her account on the expected date. This triggered the bank to reject 7 DDs and charge her ( a benefit claimant) more than £200. This escalated to over £3000 over the next 12 months and the woman had to go bankrupt.
I agree that people who fail to manage their money correctly should not be let off the hook but the example above is sheer theft - nothing less.
So shes got 7 DD's set up to be taken one single day after she gets the money!!?
See, that's the issue here. One day and you are screwed. She's relying on everything going 100% smoothly electronically, with no margin for error and not taking any responsibility for any of the payments either in or out.
Whewn you sign a DD, you say you will have the money available on x date.
Paying by phone etc she could have logged on, seen there was a benefits problem, and not paid her bills until it was sorted. No charges.0 -
I agree that people who fail to manage their money correctly should not be let off the hook but the example above is sheer theft - nothing less.
It is theft.... From the hard working people in society paying benefits claimants to live in such a lifestyle.
A benefit claimant shouldn't have a current account to begin with. They shouldn't have anything beyond a dormitory bed and access to a canteen for free food. And a job centre attached.:rolleyes:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards