Bank Charges - illegal?

bookworm1363

Oh, I do, I do, and tbh, it is something which has been debated before. But when the government took away our liberty to be paid our wages and benefits in any other way than by bank payment, it undertook a responsability as well.

Funnily enough, I was discussing the matter with one of my sisters in France, relating to our other sister. She is, and always has been, chronically bad with money, and no excuses about it. Shopaholic, spendaholic, any way of frittering money, she knew it... She got her bank account closed at least twice, and of course, due to her credit history, no other bank would take her on.

She had to go to the Banque de France, which has overseeing and regulatory powers over the whole of the French banking system, and they forced a bank to accept her, because, like here, you have to have your wages and benefit paid in a bank account.

I firmly believe that if the situation you describe were to happen (and personally, I actually think it is only a matter of time before a more enterprising bank starts marketing themselves so as to attract that share of the population), the government would then to either reverse the current manner of processing wages (and I doubt the IR would be too pleased about that, seeing how convenient it is to them to check on income) or ensure that no matter what, there is somewhere for those people to get their money paid into.

Of course, there is another element, which makes the victory not a pyrrhic at all: Quite a few people, on regaining their money, will actually have got back enough that they actually got out of debt.

People have been known to default on such arrangements.

True. But, tbh, if this happens following the bank's retaliatiory tactics, I have little sympathy. IMO, people are more likely to default when being pressurised into paying one great big lump than several small chunks.

oldwiring

bookworm1363

You rightly query my pyrrhic as the refund of charges could mean they get out of debt. Indeed that is true, but the other things I mentioned as possible should be the fiocus. In the longer view ( and it is only MHO) there could be collateral damage, e.g. hefty acount maintenance charges that you have to agree to before having an account or agree to to allow an account to contine. As to competition, I wonder if there could be competition to shed unprofitable customers .

carter2006

Can anyone help?

I have a Bradford & Bingley Time Saver account which lets you make direct debits, standing orders and provides you with a cash card to withdraw money from the ATM/Cash point.

If there is insufficient monies in my account, they charge me an administration charge of £25.each time. I was advised by someone who works at the Nationwide Anglia (my sister-in-law so she is hardly going to lie) asked for details of all statements and fees (known as Subject Access Request – under the freedom of information act) which should cost around £10 which is recoverable. These under legal requirement, have to be sent out to you within 40 days of your request.

I telephoned to bank and questioned them about their breach of the 1999 Consumer Credit Act and that they are punitive charges and therefore not enforceable in law.

I was informed that these charges where not punitive charges, these are administrative charges as they have to employ people to go into my account, reverse the charge out of the investment ledger, then to notify me of the say, direct debit of not being paid. The charge is for corrective work they have to carryout on my account.

They have also stated that the Officer of Fair Trading is looking into bank charges but no decisions have been made.

Surely an account that allows you to set up direct debit’s and standing orders and attaches fees for those not paid is surely not exempt from the 1999 Consumer Credit Act. Are they just using a different word for these charges and therefore trying to escape these claims as according to Nationwide Anglia these claims will cost an estimated £5million pounds to them.

My sister in law works in the department that deals with these claims and currently has some of her own claims going through the system.

Is these charges are exempt, who is the person responsible for making the decision that £25 is an agreeable and justifiable amount to claim of the likes of us for someone to go and play on a computer for a few seconds (usually). This is how the Banks and Building Societies make such record profits. Where is it written on any document that I have agreed to the £25 charges placed on my account?

Edinburghlass_2

Have a read of Martin's article here to start with and you'll find all the links and help you need contained it in to start your own claim

Zero1873

One quick question.

Can you be liable for costs?

My wife has just had one in, and I would like to take it further.
Maintenace charge - £28
Fee -£12
And then £9.66 interest.

squarebanana

Hi i have had 3 accounts with lloyds tsb i have just shut one down out of disgust for the way ive been treated,as they're shutting one other down as i have had 5 direct debits returned this year, not sure about the other two years i have had this account, trouble is i told this two one of their operators today, and i asked him exactly how many debits have i failed on over the last three years since i opened it... he said he couldnt tell me and why was i asking. I told him i was going to see if i could get my charges back, i asked him could he send me details of the charges, he said he could for £5 for every piece of paper they send me. as i havent got all my statements.
can i still get these and claim the £5 back?

sorry still a bit confused with all this, as ive been depressed all week over this matter.

Also i have a ltd company account with the TSB could they shut this down if i claim these charges back?

Alan

JUDY_2

hi i sent letter to llyods solicitors have written back to the courts with details now its all gone very quiet is this the normal

Sponge

I sent a letter to Alliance & Leicester asking for a refund of the £34 they charged me for a refused Standing Order. They replied this morning saying their charges are 'reasonable & competitive with the charges made by other financial organisations.'

They continued to say that the OFT comments on unfair charges were referring to credit cards and not current accounts. They are therefore refusing to refund my money.

Is this true? Or is it just them trying to fob me off?

JohnPeard

Banks invariably argue that they are operating within the agreed terms and conditions.

However, one of the most important T&C, usually the last one on the document states:

"The Agreement will be construed and governed in accordance with English law"

This clearly supersedes any other term.

Tim_L

Squarebanana - you can get all of your statements for a £10 Data Protection fee. There are plenty of details of this here, or look at the bankchargeshell website.

Sponge - you are being fobbed off.