Reclaim Bank charges is this fair for others

flam147

now lets do things the banks way

Breaking News bank in charge of M6 toll road
"we are pleased to offer motorists the chance not to Queue on the main M6 which we think £10 is excelent value for this service" said the bank spokesman this morning

Mr Smithgoody who has an A1 credit rating so has a normal road account applied but only had £7.50
the tollteller replied " you may continue but you owe us £2.50 and you will owe us a further £15 for allowing you to continue. which is the Authorised road usage loan fee. you may not use the outside lane if you do you will be charged the Unuthorised lane usage fee and will be charged £25"

Mr Smithgoody2shoes who has the Superdupper Red road account who pays £5 a month for the privlidge also only had £7.50
the Tollteller replied " You may continue but you owe us £2.50 but you will not be charged anything because you are within your limit. you may use the outside lane and drive as fast as you like. if you are stopped by the Traffic police for driving your Ferrari F40 at 150MPH you will be ok because it is in your terms and conditions of your account".

Mr Smithbaddy who was only allowed a basic road account who by mistake took the wrong turning only had £9.99
the tollteller replied you only have £9.99 and you may not owe us 1 penny so we cannot provide you with this service. We have to keep your £9.99 but as you have applied for unauthorised road use you have to take the slip road back on to the main M6 free road. we will charge you a £38 unauthorised road useage fee and you owe us £27.01.

Mr Smithbaddy was outraged complained and ask for the charge to be refunded, but Angela from the BBRA (British Bankers Road Assoiation) said "we think the charge is fair for not being able to provide the service. as you know the terms of Basic road account holders have to pay up front and are not allowed to borrow to use our road service.
it is clearly marked in your Terms and conditions when you opened the account that you must have the £10":D

Junovo

esmerellda wrote: »

So really those who do overdraw are paying for your free banking. Is that fair?

I understood this was regarding charges when a person went over their agreed overdraft facility. Whilst the penalties for this are excessive isnt that the fault of the person spending more than they are allowed ie taking money without permission. Why should I pay for the person doing this? Should they not be responsible for their own action. ?

natweststaffmember

Junovo wrote: »

I understood this was regarding charges when a person went over their agreed overdraft facility. Whilst the penalties for this are excessive isnt that the fault of the person spending more than they are allowed ie taking money without permission(think about what you have said. Taking money without permission. The bank authorised this so there is no "without permission" involved. Why should I pay for the person doing this? Should they not be responsible for their own action. ?

Should the bank be responsible for allowing customers the facility to do this?
Surely a strong bank would never allow its customers the opportunity to exceed an overdraft?

Nathan_Spleen

Junovo wrote: »

Whilst the penalties for this are excessive isnt that the fault of the person spending more than they are allowed ie taking money without permission. ?

They are not taking money 'without permission'.

Junovo

natweststaffmember wrote: »

Should the bank be responsible for allowing customers the facility to do this?
Surely a strong bank would never allow its customers the opportunity to exceed an overdraft?

Not sure how a bank can control Standing orders or direct debits or bounced cheques when there are not enough funds in the account or even with the overdraft to honour them. So yes customers do spend more than they have in there accounts with overdraft and effectively this is without permission isnt it ?

natweststaffmember

Junovo wrote: »

Not sure how a bank can control Standing orders or direct debits or bounced cheques when there are not enough funds in the account or even with the overdraft to honour them. So yes customers do spend more than they have in there accounts with overdraft and effectively this is without permission isnt it ?

You cannot exceed an overdraft without permission because by going into excess funds the bank has authorised it.
For example, the bank authorises you to use a card even though it remains the possession of the bank, they issue 25 cheques in a chequebook which authorises you to use them. Before you ask about theft, there is 1 single case in which that happened with a cheque book in the 1970's.
The bank cannot control standing orders? Why not? The bank cannot control Direct Debits? Why not? The bank with ISA's make sure that no direct debits or standing orders are set up on that account so why can it not stop them?

The more you state that it is theft/without permission the more you are digging a hole for yourself. No one can do anything without permission of the bank which issues the tools of the trade so to speak.

Junovo

natweststaffmember wrote: »

For example, the bank authorises you to use a card even though it remains the possession of the bank, they issue 25 cheques in a chequebook which authorises you to use them.
The more you state that it is theft/without permission the more you are digging a hole for yourself. No one can do anything without permission of the bank which issues the tools of the trade so to speak.

Ok ... the bank issues a debit card which should be used to pay for items on which you have the funds ie your balance plus any overdraft facilities. When a person uses the card for purchases over this limit then they are using money for which they have no authority. This I would say is taking money without permission from the bank. If the person cant work out how much they have and how much they can spend then why should i pay a fee to cover their error.

I wouldnt say Im digging any hole as the above is correct and before you ask I have a partner who has worked for the bank over 25 years so we know how the banking system works. Yes the debit card is a tool for spending but so is a car for driving and are you allowed to break the speed limit?

Nathan_Spleen

Junovo wrote: »

Ok ... the bank issues a debit card which should be used to pay for items on which you have the funds ie your balance plus any overdraft facilities. When a person uses the card for purchases over this limit then they are using money for which they have no authority. This I would say is taking money without permission from the bank. If the person cant work out how much they have and how much they can spend then why should i pay a fee to cover their error.

I wouldnt say Im digging any hole as the above is correct and before you ask I have a partner who has worked for the bank over 25 years so we know how the banking system works. Yes the debit card is a tool for spending but so is a car for driving and are you allowed to break the speed limit?

The banks authorise every debit card payment either electronically at the point of sale or if the amount is below a shop floor limit and the transaction is conducted manually, authorisation is not only clearly implicit but granted in your contract as an informal request for an overdraft.

If we could all spend 'the bank's' money so easily in the way you suggest it wouldn't be much of a bank would it?

Junovo

Nathan_Spleen wrote: »

authorisation is not only clearly implicit but granted in your contract as an informal request for an overdraft.

So a person who arranged a £100 overdraft can go over this whithout penalty as its a "informal request for an overdraft". Whats the point of arranging an overdraft then ?

Nathan_Spleen wrote: »

If we could all spend 'the bank's' money so easily in the way you suggest it wouldn't be much of a bank would it?

Example ..... pay for service on day1 with cheque. Bank is unaware as not paid into clear. Then pay for item using debit card on day 2 and funds are ok still as limit not reached. Then on day 3 cheque comes into bank which then places balance over the agreed overdraft. Are you saying this is the fault of the bank or the customer?

Nathan_Spleen

Junovo wrote: »

Then on day 3 cheque comes into bank which then places balance over the agreed overdraft.

It only places the balance over the agreed overdraft if the bank decides to pay the cheque. Think about it.