Bank Charges - illegal?

carlih1

Hi

Are you dsaying that every charge i have had for unpaid direct debits shouldn't have been charged???

Can i claim this money back, i recently had a conversation with my bank (Halifax) telling them that they continue to stop me getting out of debt because they take a phenominal amount in bank charges every month, they are not helping the situation and i lend them my money in good faith.

Do u suggest i send them a letter asking them for the money back, i could pay off some of my debt with this money!!!

Cheers

Carli :santa2:

virgin_moneysaver

comicmankev wrote:

So you also do not think the charges are 'fair'. I'm glad I could clarify that, I was getting the wrong impresion in your first post.

I personally think the scale of fees are getting ridiculous & if the banks carry on this way they are gonna find it even harder to justify than they do already

I don't know what the answer is because you're not going to please everyone - the financial institutions are a business like any other & have to make a profit to survive (though there profits do seem obscene some years) & of course they have the shareholders to answer to

But, if as some people seem to want,the d/d fees & o/d fees are dropped, then they'll start charging for basics like cheque books, statements & the like then the thousands of customers who run their accounts within the T & C guidelines are going to be up in arms as they are going to feel they are subsidising those who won't - and there is a difference between those who won't & those who can't

I appreciate that you said that you admit you knew of the transactions due & hold your hand up but there have been some people posting who abdicate all responsibilty in controlling their finances & then moan about the consequences, these are the ones that never check their statements, or keep them, or don't bother with receipts after they've used there card - it's just when people want to abdicate all responsibility for their actions that irks me.

dchurch24 has said in an earlier post that he (Ithink he's a he! apologies if I got it wrong!) has stopped all dd's where possible & pays in cash - great, if that works for you & thats how you can keep control I'm all for it

as for the clearing system, it's antiquated & Sweden have proved there is a faster way, & the day the B of E update our system I'll be first in line with a round of applause, but in the meantime we've got to work within the realms of the one we've got

I don't think there is a definitive answer that will please everyone, but if you think you know one don't waste time posting it here contact Gordon Brown & the Bof E pronto!!

dchurch24

I agree that if (when) these types of punitive charges are dropped that the banks will start charging for cheque books, dd payments etc...(although I have not found this to be the case with my French current account - no penalties, no charges but then France is a much more socialist county).

I think this would be a much fairer way - -it would upset people who like being subsidised by people who can least afford it, but I think some people in that instance need to take a good look at themselves. Attitudes like that are damaging to the society as a whole.

Of course, if they don't like paying a fair price for a fair service, they can always do as I do (as you correctly quoted (and I am a he!)) and pay in cash for the most part.

dchurch24

carlih1 wrote:

Hi

Are you dsaying that every charge i have had for unpaid direct debits shouldn't have been charged???

Can i claim this money back, i recently had a conversation with my bank (Halifax) telling them that they continue to stop me getting out of debt because they take a phenominal amount in bank charges every month, they are not helping the situation and i lend them my money in good faith.

Do u suggest i send them a letter asking them for the money back, i could pay off some of my debt with this money!!!

Cheers

Carli :santa2:

Yes and no. If you paid the charges and do not dispute them, then no law has been broken. However, if you challenge the charges (by writing them a letter) they are not legally enforcable - so you could take it to court to get your money back.

What I would do in your case is to move to a new Current Account and leave whatever OD you have there, write to Halifax informing them that your overdraft was caused indirectly by their punitive charges and tell them that if they wipe-out the overdraft then you will not start legal proceedings against them for recovery of the money.
...or, you could say that you will leave the OD there as it was caused by the penal charges and that if they want the money they will have to take you to court. Any references made to a credit agency will be seen a defamatory and you will seek appropriate legal assistance if they do this.

I did this with Abbey and got the cash back.

richiethekid

The banks would make a nice profit even without charges. A ridiculous number of people keep their money in current accounts that pay something like 0.01% interest (and some pay for the privelege), and there are billions of pounds in savings accounts that pay less than 2%. Then they sell loans, insurance and other products at hugely inflated prices. Take into account overdrafts and credit cards, not to mention the length of time it takes to transfer money or clear a cheque, and the banks will do just fine. I know most of this won't apply to the vast majority of people viewing this site, but compared to the general population we're in the minority.

I you ask me, the rules need to be a lot stricter as to what banks can and can't get away with. For example, charges of no more than, say, £2.50, limited to x per day, and with much stricter rules as to when charges can be applied (so as to avoid them snowballing). And while we're at it, there should be a standard charge which the bank pays the customer every time the bank makes a mistake.

There should also be a system whereby, if someone keeps abusing the direct debit facility on their account, it should just be removed so they have to make their own arrangements to pay. But of course this wouldn't happen as the banks wouldn't make as much money.

inmypocketnottheirs

The point here is, that a banking system can not be run for free, somebody somewhere has to pay. I remember (as I am sure many os moneysavers do) when banks first introduced free banking. Until then there was a raft of charges, for statements, credit and debit entries, etc, etc. The point is, that because of commercial competitiveness, the banks have all cut costs to the bone (call centres in India), shareholders have got so greedy, that the banks have to turn a profit from every angle. I know a lot of people in the banking industry, as well as running my own business. All the banks will maintain that they do not make a profit from what is termed retail banking. Retail banking is what we all use by way of current accounts.

The current practice of these penalty charges is unfair, and hits those either on low incomes or those (like myself) with erratic incomes, when often I have to pay out before I am paid. Many of us have to juggle our finances, worse still when you are running a business and a household. Two sets of finance to worry about.

These punitive fines have got to be stopped, and a fairer more even handed method of charging adopted.

dchurch24

don't think there is a definitive answer that will please everyone, but if you think you know one don't waste time posting it here contact Gordon Brown & the Bof E pronto!!

The answer is to make money from the money we lend them. 'Retail Banking' works this way in France (the 5th largest ecomony in the world), so why can it not work here.

I have got my MP to raise this issue with the Treasury Select Committee and the OFT, and was pleased to note the the TSC agree, mainly on the principle that because so many people are hit by these charges it is starting to affect inflation.

The OFT extended their remit from CC charges to include these bank charges as well.

The point here is, that a banking system can not be run for free, somebody somewhere has to pay.

That's why we lend them our money, so they can invest it, lend it to others at higher interest rates etc...
The so-called 'free banking' is already being paid for.

carlih1

dchurch24 wrote:

Yes and no. If you paid the charges and do not dispute them, then no law has been broken. However, if you challenge the charges (by writing them a letter) they are not legally enforcable - so you could take it to court to get your money back.

What I would do in your case is to move to a new Current Account and leave whatever OD you have there, write to Halifax informing them that your overdraft was caused indirectly by their punitive charges and tell them that if they wipe-out the overdraft then you will not start legal proceedings against them for recovery of the money.
...or, you could say that you will leave the OD there as it was caused by the penal charges and that if they want the money they will have to take you to court. Any references made to a credit agency will be seen a defamatory and you will seek appropriate legal assistance if they do this.

I did this with Abbey and got the cash back.

Hi

I don't have an overdraft could i just write them a letter asking for the charges back?

Carli

inmypocketnottheirs

dchurch24 wrote:

That's why we lend them our money, so they can invest it, lend it to others at higher interest rates etc...
The so-called 'free banking' is already being paid for.

Well yes and no! From sources I have, retail banking on its own is not self sufficient. I.e. the taking of deposits and lending out does not cover the operating costs. I remember the days of quarterly charges, per credit/debit/statement etc. These costs are now being met by the minority (i.e Dchurch and myself!), and it is not a fair system.

dchurch24

These costs are now being met by the minority (i.e Dchurch and myself!), and it is not a fair system.

He he, not anymore my friend - I've had all mine refunded with interest ;-)

Hi

I don't have an overdraft could i just write them a letter asking for the charges back?

Carli

Yes of course - they will refuse most likely - then you start proceedings against them.

Tell that to them in the letter - give them 7 days to refund the cash or you will start proceedings - it can all be done on-line and costs a nominal amount (which you claim back from them in the end anyway!).