Bank Charges - illegal?

dchurch24

MPH80 wrote:

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.

Well I would say that the shareholders need to learn what whareholding is all about - it's not about increasing the size of the profit each year - initially it was for people to take a share in the companies natural growth - not demand greedy year-on-year percentage increases at the expense of those that can least afford it.

There really is no competition between banks - their interest on current accounts is pitiful - one bank will mistreat it's customers as much as the next.

REAL competition in this market would create a breath of fresh air.

Tim_L

MPH80 wrote:

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.

Banks can't charge for current accounts in this country because of competitive pressures. They'd like to - hence the rise in attempts to get people to sign up to 'premium' accounts with a charge - but it won't become the norm because people won't accept it. Sorry, Westernpromise, but the level of competition for customers is obvious when you see the inducements they are paying to get people to sign up to current accounts. Of course if these penalty charges were a reflection of costs then they couldn't be used to subsidise current account costs for other customers.

And anyway, stealing from those in marginal financial difficulties to fund free banking for others is pretty regressive however you look at it.

Banks make a lot of money from their current account customers. They are loaned cash by all of us for a pittance, and they sell mass marketed products that are highly uncompetitive to an essentially captive, lazy, customer base. Frankly they don't need to indulge in petty theft to make up the numbers. This is a fundamentally dishonest practice and deserves to be stamped out.

mariannemarlow

I have been charged loads on my current and credit cards and would like to start trying to claim this back. But I am about to start a debt management plan (1st march) with the CCCS in paying back my debts.

Can I still try and get my charges refunded?

dchurch24

I don't understand the 'morals' argument.

Banks have no morals; of that there can be no argument.

Now, for me to attempt to pay someone, and it turns out I have no money to pay them with - then surely that is a matter between me and the vendor. Why should the bank dip into my account and steal money from me because of it? Morals? How immoral of me to run out of money. Yet, not immoral of a bank to steal from me "because" of it.

Frankly, it's none of their bl**dy business if I haven't got enough money to pay someone that I have promised it to - I don't think it's very moral to steal from someone because they haven't paid a third party organisation. Incidently, I no longer use DD's or SO's - you could never trust the bank to handle them correctly in any case. But, because of this, I can no longer pay bills larger than £300 because I am not 'allowed' to draw that much out of a cash machine - couple that with the fact that their nearest branch (or any branch of any bank for that matter) is a 24 mile round trip and effectively my money is being held hostage by the bank. I don't want them to have it, but alas, I have no choice - my employer chooses to pay it's employees this way and since 1984 the employee has had that 'choice' taken away legally.

Why should this practice be allowed to continue?

gothicf0rm

free banking??? lol.
the profits of the top four banks are over £24 billion. only £3.5 billion comes from bank charges. whats all this rubbish about free banking? do people realise the fact there is no competition amongst them about charges right now actually makes the charges even more unlawful?
i didnt have free banking anyway, i had to pay £10 to pay a foriegn cheque in for example. i have to wait days for cash to clear when paid into an atm. i have to wait days for a cheque to clear and days for a BACs payment to go through.
is it moral for a bank to refuse someone an authorised overdraft of £250 but will allow them an unauthorised one of £250. is it moral for that same bank to then take £250 of the £270 a person gets in benefit that month in their charges? is it moral to keep doing this when the person is mentally ill, the bank know this and say they dont care?

System

Well after writing back to Halifax and Natwest with another 7 days notice prior to legal action. Natwest are still offering me £50 which i am not going to accept and Halifax are offering nowt!
Looks like its time to commence legal action as they are both telling me that i was aware of charges in the terms and conditions.
First thing tomorrow i will file my actions online.

msaquib

CAPITAL ONE BALANCE £545.79

My brother written a letter to Capital One disputing charges of £350. It's over a week now but he has not received a reply from Cap One.

Today he received a letter from Heatons LLP Solicitors asking for an immediate full payment of £545.79 by 4th February or they commence County Court proceedings.

His Credit Limite was £200 and rest of the balance are charges.

What can he do so Capital One can refund the charges back?

Please help. Thank you

S11

dchurch24

Take them to the small claims court.

If he can, I suggest he pay off the 200 quid, and sue for recovery of the charges.

Their solicitors should be clued up enough to know that they would not be able to enforce a debt that is in dispute legally.

joannemc3

hello all ,

I sent a letter on the 20th jan 2006 to my local branch (hsbc) requesting a summary of the charges over the last 6 years under the data protection act ect, still havent heard anything ,how long do they get to reply ??? and should i ring to check that they have recieved my letter

regards
jo

gothicf0rm

if the debt is in dispute and the claimant continues to persue the debtor for the debt despite it being in dispute they are breaking the law. call the local trading standards if they continue to do this.
remember with a credit card yovue been charged interest on the charges too so he is actually legally UNDER his credit limit. he should do what i did, i was under my credit limit but for the charges and i simply said "so sue me". they cant. haha.
as ive said before, they agreed pretty pronto to deduct the charges from the balance and make the rest into an interest free loan. problem solved, there isnt much else they can do because if they tried to stick to their guns their solicitors would know they have a debt they cant claim (and arguably doesnt exist).