Bank Charges - illegal?

TPAOY

Govan Law Centre is at http://www.govanlc.com/bankcharges.html

westernpromise

The point is simply that just because something is in a contract, it isn't necessarily enforceable. There are lots of examples of this, and not just in consumer or credit law.

Employers often include a clause saying that if you resign, you won't work in the same business or pursue their customers for a certain amount of time after doing so. That is widely held to be unenforceable, too. If I sell widgets for a living, there are only 2 widget businesses, and I want to resign from one and go work for the other, that clause would effectively prevent me from leaving. It is left in contracts because although employers know it's unenforceable, employees might not. You might fall for it, and it costs them nothing to try it on.

It's just a question of degree and of possession. Banks have your money so they can help themselves to it, so most people assume they must somehow be legally entitled to do so.

Skint_Phil

I've just run into my first stumbling block. I rang HSBC and requested statements for the last 6 years. They will provide them but at a charge of £1 per sheet, a total of approx £130.

Am I correct in thinking that under the DPA they can ony charge a nominal fee? If so what is the fee and what should I quote to them when submitting my request again?

I also noted two different time scales mentioned for the provision of requested info under the DPA: the first was 21 days (not working days), the second 40 days. Which is correct?

One plus from today is that I now have a contact name at my old branch that I can address written correspondence to. Should I continue now in writing only?

I realise this is revisiting stuff previously mentioned, but I like to get things staight in my head before I take each step.

dchurch24

They can charge a maximum of £10 - don't worry - they all try it on. Barclay card wanted 216 quid from me. They got nothing.

Write them a letter explaining the DPA and the information commissioners guidlines (they say 10 quid is the amount they can charge).

40 days is the length of time they have to comply with your request.

Have a look here: https://www.informationcommissioner.gov.uk

Tell them that you WILL report them to the comissioner if they do not comply within the allotted time scale. Also, refer them to the Durant vs. FSA case where the judge ruled that bank statement information is indeed personal information and that it is covered by the DPA. A lot of them try it on and say that this info is not covered by the act. The reason is, they KNOW why you want the information and will do everything in their power (and a lot of things NOT in their power) to stall you.

exil

Sorry, it IS relevant whether you dipped in to the red by accident, or deliberately.
If not legally, then certainly morally.

Why am I fuming about this? Not because I love the banks - far from it. It's just that I know that if thousands of people start claiming millions of quid in bank charges, and force the banks to cut their "punitive" charges - the banks will pass the cost and lost profit straight on to those of us who don't deliberately break our contracts with the bank. So - goodbye to free banking.

dchurch24

So it's perfectly ok for a blanket charge, mostly affecting those that can least afford it to subsidise what you call 'free' banking, even though you are providing the bank with money each month for them to profit from?

As to the banks charging for each 'service', then I think you should look abroad and see how it works there. There are many banks in the uk, if it forces banks into a position where they have to actually compete against each other, then we ALL benefit.

Don't be so pessismistic.

MPH80

Banks have to compete with each other right now - it hasn't stopped their charges rising ... low current account rates etc.

Ok - the current account rates are slowly going up - but so are the charges!

The problem is simple - prevent the banks doing something that is giving them £3 billion every year - then they have to make the money elsewhere or the shareholders will be up in arms.

I can't see a way to recoup that money other than putting an end to free banking.

M.

westernpromise

There is no serious competition among retail banks at present. Their savings products, current accounts, credit card offerings, and of course charges are all remarkably similar, and that's how they like it.

cheeky

my partner has been on maternity leave for 8 months. I contacted cahoot and asked to increase the overdraft for 1 month as she has just returned to work. The answer was "no, you have reached the product limit" (£2000 overdraft). Its a joint account - if we had seperate accounts we could have £2k each.

Well, we went £15 over this limit for 4 days and were charged £55! So, next month i have to sell some shares, the money clears a day late - we went £15 OD again and they rejected a £400 DD. They are now going to charge us at least £55 again!

Now if they had charged us say a tenner each time i wouldnt be on here looking for ways to get our £110+++ back. They are just greedy barstewards

carlih1

exil wrote:

Sorry, it IS relevant whether you dipped in to the red by accident, or deliberately.
If not legally, then certainly morally.

Why am I fuming about this? Not because I love the banks - far from it. It's just that I know that if thousands of people start claiming millions of quid in bank charges, and force the banks to cut their "punitive" charges - the banks will pass the cost and lost profit straight on to those of us who don't deliberately break our contracts with the bank. So - goodbye to free banking.

I understand what your trying to say, and were4 not saying that other people that DO conduct their bank accordingly should pay for the banks mistakes or ours for that matter!

What we are saying is that the banks are profiting from this when they shouldn't be and we wouldn't mind paying if it was an actual charge but we give them enough of our money as it is.

For instance the banks charged me over £1000 in charges when i had split from my ex and the inland revenue stopped my tax credits by mistake for 6 months, now that was not my fault i had no control over either organisation and it was completely unfair, to make matters worse the amount i have been charged only made matters worse and also damaged my credit rating, thats not fair in the slightest!

Carli