Penalties and fines charged by banks

tradetime

I assume you are someone who wants to gain an attractive rate on your money by accepting to tie it up for a fixed term full well knowing that you may have to take it out early. If the banks cannot levy a penalty sufficient to discourage people from withdrawing their money early then they will simply offer a lower rate. Either the person playing the system pays, or everybody else pays so they can play the system. Much as I dislike banks, I realize they are nor charitable organizations.

tradetime

john_s wrote: »

I think I'm one of the few people who don't see the problem with overdraft charges.

If your income is higher than your outgoings then more fool you if you go overdrawn. If your income is less than your outgoings then overdraft charges are among the least of your problems (although I don't deny they add to them).

Of course, my opinion has no bearing on the legality of them.

I agree totally, it's an attitude of "I want to take the p!ss, but I don't want to pay for it, no I'd rather everybody else paid for it."
The naivety here is that the banks do not make less money in the long run, they simply reorganize their charges to spread it round everybody else, so those who make the effort and take the time to organize their accounts appropriately subsidize those who can't be bothered.

cottager

eeja wrote: »

... deemed by the judge to be unfair.

But why would it be deemed to be unfair? The terms were set out from the start, and signed up to.

eeja wrote: »

... in my view.

And of course you're perfectly entitled to it. I for one just don't happen to share it. I see nothing unfair or unreasonable in being clearly told from the outset what the score is, then taking a 'penalty' if I break those conditions. When considering whether to open an account I have free will and choice to accept or reject the conditions as offered, and to sign up or not, as do you. There would be no incentive whatsoever for higher rates for fixed terms to be offered at all if the conditions could be challenged at the drop of a hat, and with the dire savings situation now I'm very relieved that isn't the case.

The only possible circumstances I can imagine where I might be miffed about 'penalties' was if I found myself in an emergency situation where I had no choice but to pull out funds early... but only miffed, mind you, not immediately thinking of the fastest route to seek restitution
It would just be unfortunate, 'one of those things', and I'd take it on the chin... because those were the terms I signed up to.