Open Letter To David Cameron - 25 AUG REPONSE NOW IN

sarahgrif

after reading through some emails on bank charges it makes me really annoyed to read people saying that its our fault and that we should look after our finances better sometimes things happen beyond our control. my husband had an accident at work which meant he couldnt go back to his job we were getting £65 a week to live on sick money the banks were taking over £300 a month out of my account i was left with nothing to live on so how can that be fair these people who say its our fault havent got a clue what its like to struggle from day to day because youve got no money because the bank has taken it all

laalaa41

sarahgrif wrote: »

after reading through some emails on bank charges it makes me really annoyed to read people saying that its our fault and that we should look after our finances better sometimes things happen beyond our control. my husband had an accident at work which meant he couldnt go back to his job we were getting £65 a week to live on sick money the banks were taking over £300 a month out of my account i was left with nothing to live on so how can that be fair these people who say its our fault havent got a clue what its like to struggle from day to day because youve got no money because the bank has taken it all

I agree wholeheartedly - it drives me mad that people with so much money anything can happen and they can just absorb it without blinking an eye but the rest of us can't even afford food any more.

In the past, banks would only take these charges from you if you ignored letters, behaved badly etc. If something happened accidentally, and you explained legitimate circumstances to your Bank Manager (who you could actually MEET with), the charges were returned to your account on the spot.

Not sure when the switch flipped - the next thing was banks claiming they had a right to take what they liked and who knew it would be £35/38 a pop because EVERYone was taking measures to ensure things like this wouldn't happen - except we no longer had such control - the goalposts had been moved beyond what by anyone's standards are remotely fair.

Banks still have trouble acknowledging the phrase they trot out: "responsible lending" with the crippling effect these charges can have, adding to a horrible situation and effectively destroying lives. How responsible are unethical/ immoral business practices? They were taking care of their profits/bonuses before recognising a human right to fair treatment. And the government stood back and let them. There is no integrity any more. Time to vote with our feet and time for a new breed of bank.

Mad_Mick

KGfromKent wrote: »

I certainly agree, and have thought for years, that banks should not be allowed to help themselves to our money, without at the very least billing us like any normal company has to, and better still going through the courts. Unfortunately other large corporations have found ways to effectively help themselves when we are in dispute - they simply cut off the service - gas, phone, electricity, broadband etc. - it's pay up or else. The only utility not allowed to do this is water, but even they are pressing the government to relax this so that they can reduce the supply to a trickle.
I have been in dispute with Thames Water for years, they insist my meter is not leaking, and I insist that it is and that it's wasting water for which I am being charged. If they get their way I will be forced to pay up.

You need to be careful with the water company KG. If the water is leaking from their side of your meter then you aren't being charged. If the water has gone through the meter I sorry to say thats your side and you are responsible for having it repaired. I get loads of flyers from my water company reminding me that anything between the meter and my house is my responsibility.

laalaa41

A good point there, about ordinary people who are not particularly bright or don't have degrees in economics should not be expected to understand the loopholes and small print banks, financial institutions and insurance companies use to effectively con the POOR out of money. If one pays insurance against redundancy, if Im made redundant, I expect the insurance company to pay out. If I'm sick and I have health insurance, I don't expect to be told that my particlar disease isnt covered just when my world is falling apart. These things MUST be clear before signing on the dotted line. This is where computers are not much help - face to face is the only way to buy such products so that everything is properly explained and understood. Otherwise it shouldn't even stand up in court.

Former_MSE_Wendy

Hi all,

We've finally had a reply from David Cameron to our open letter. This is an unedited version and is slightly political!


"Dear Martin,

Thank you for your letter about unfair bank charges. I am sorry that it has taken me a little while to reply while I have been away from London.

I'm glad you liked our White Paper. Voters now know that if they want to change the way their banks are regulated they need to change their Government.

I've never shied away from taking the right decision when it's in the interest of consumers. But equally, I don't think it is right to make policy decisions without a detailed analysis of the issues. After everything that's gone wrong over the last decade, people don't want to see politicians making policy on the hoof.

When it comes to the question of bank charges I know there are a number of unresolved legal questions, and that the original judgement on the charges is now being appealed. Obviously, we shouldn’t second-guess any possible court decision, but once the legal issues have been resolved I agree with you that bank customers must be compensated quickly and fairly for any unfair charges that they have had to pay.

So I've asked my Shadow Treasury Team to look at your suggestion that banks should pay money back automatically if the courts do rule that the charges are unfair. They will be in touch with you to take this forward and go through the details, and I hope you will feel able to stay in contact with them to discuss this further.

Many thanks, once again, for writing to me. I think it's fantastic that websites like Money Saving Expert are empowering people to take more control over their own finances - so please do stay in touch.

Yours sincerely,

David Cameron"

natweststaffmember

Seems a fairly reasonable response, to be honest.

laalaa41

I quite like it too. It is couched in warmer terms than Ive seen issued from government offices before. He hasn't made hollow promises in giving his opinion on the matter but whether, once in government, he will find himself in a strong enough position to force the banks to pay their customers back remains to be seen - after all, banks do think they are a law unto themselves and have already ignored calls to stop bonuses.