MSE news: Tories brand bank charges "unfair"... how far will they go?

Once_bitten

natweststaffmember wrote: »

Like for example packaged accounts which many people pay a monthly fee for, or having a tv licence which many people pay for, or paying council tax which many people pay for or paying rent or mortgage which many people pay for.
Sorry, but what's the difference? Why is bank account charges different?

I don't believe any of the above have ever been free. Human nature being what it is as soon as they start getting charged for something that is perceived as being 'free' there will be uproar. 80% is a lot bigger number than 20%

natweststaffmember

Once_bitten wrote: »

I don't believe any of the above have ever been free. Human nature being what it is as soon as they start getting charged for something that is perceived as being 'free' there will be uproar. 80% is a lot bigger number than 20%

Current accounts at one time were not free either. In fact it was HSBC who started the free bank accounts in the 1980's so it is not something that couldn't happen.
I don't think that banks have to charge for a current account. For example, when they made £40 billion pounds profit in 2007(I believe) the previous year the banks' in total made £4 billion pounds from charges. That is one tenth of the total profit.
Furthermore, the things I listed are essential things in the present day. If a bank account is an essential item then part of me says, why do we not pay for it?
The banks can increase costs on business banking or even increase interest on authorised/unauthorised interest.
How come Barclays can reduce charges from their personal reserve(£22) and yet bounce items at £8? Are they not losing money from that?

Nathan_Spleen

Once_bitten wrote: »

I don't believe any of the above have ever been free. Human nature being what it is as soon as they start getting charged for something that is perceived as being 'free' there will be uproar. 80% is a lot bigger number than 20%

The point Natweststffmember was making is that there is nothing inherently inequitable with everybody paying for the banking services they receive.

Once_bitten

Fairness has nothing to do with it. The point I was making is that the majority of people have no interest in this as they are not affected directly. As soon as they start getting charged they will not be happy

natweststaffmember

Once_bitten wrote: »

Fairness has nothing to do with it. The point I was making is that the majority of people have no interest in this as they are not affected directly. As soon as they start getting charged they will not be happy

But do you not get that that competition will drive the market and the likelihood is that someone will not charge to keep custom. I just do not see that banks' will need to charge for the basic necessity of having a current account. Bank Charges are still gonna remain regardless of anything but they will be fair.
Do you know that balance transfer without a fee went a few years ago, no one was particularly happy, but it didn't stop people balance transferring. No one wants to pay for a bank account but the decision is made by the banks alone and not by the consumer. If you think it is unfair then litigate against he bank as people have done with bank charges and the banks have refused to defend their position. Do you think that kinda tells a story in itself? They do not defend credit card reclaiming either, do you think that tells a story itself?