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Nick Clegg & David Cameron reply to Bank Charges open letter

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  • johnhancock
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    Read carefully what Mr David Cameron says:-

    "..I don't think it is right to make policy decisions without a detailed analysis of the issues.....Obviously we shouldn't second guess any possible court decision....I've asked my Shadow Treasury team to look at your suggestions....they will be in touch with you to take this forward....discuss this further"

    There is no committment here. Martin has been uncharacteristically naive.
  • Nathan_Spleen
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    Read carefully what Mr David Cameron says:-

    "..I don't think it is right to make policy decisions without a detailed analysis of the issues.....Obviously we shouldn't second guess any possible court decision....I've asked my Shadow Treasury team to look at your suggestions....they will be in touch with you to take this forward....discuss this further"

    There is no committment here. Martin has been uncharacteristically naive.

    Well of course there's ''no commitment''. David Cameron would be extremely naive to back the automatic refunding of charges and then for the courts to rule the charges lawful.
  • johnhancock
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    Yes but Martin's story is

    "Cameron COMMITS to bank charges payback".


    What Cameron is saying is "We'll look at it". in the same way as they will look at everything. They will then decide. There is no committment that the decision will be in favour of those who have suffered bank charges.
  • natweststaffmember
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    Yes but Martin's story is

    "Cameron COMMITS to bank charges payback".


    What Cameron is saying is "We'll look at it". in the same way as they will look at everything. They will then decide. There is no committment that the decision will be in favour of those who have suffered bank charges.

    This is the paragraph which indicated this:

    "When it comes to the question of bank charges I know there are a number of unresolved legal questions, and that the original judgment 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."

    That maybe a watered down version of what MIGHT happen anyway but that is a commitment as such or certainly an agreement of the view that Martin espoused UNLESS "I agree" means something else?
    I have not worked for NatWest Bank since February 2009

    This username is no longer active.
  • Gotoguy_2
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    It really doesn't matter if Mr Cameron agrees that unfair charges should be refunded, as the case is yet to be resolved and therefore the charges will only be declared unfair if the banks lose the case. Once the case is resolved the banks will either have to pay up or not ,as it will be decided by Law. I am sure Mr. Cameron already knew this and this is just some good PR. The second question about automatic cashback is as usual for a politician unanswered as what he actually said is he will consider it. Sorry Martin but once again a politician has agreed to nothing.
  • johnhancock
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    "I don't think it is right to make policy decisions without a detailed analysis of the issues."...


    "I agree with you that bank customers must be compensated quickly and fairly for ANY UNFAIR charges that they have had to pay..."

    (He does not say that the charges are unfair but that IF THERE ANY WHICH ARE UNFAIR customers should be compensated quickly.Who decides what is unfair in each account holder's circumstances?)

    "So I 've asked my Shadow Treasury Team to LOOK AT YOUR SUGGESTION"

    (They can look at it and reject it)

    However if they state that it is now their policy that all bank charges since 2005 will be refunded, that would be worthwhile.
    They could give a committment to definitely legislate if necessary (and retrospectively if necessary) to make all such charges illegal to the extent that they are penalties, whether or not the House of Lords agrees that they should be subject to the fairness rule.
    But then, can we trust what the politicians say, even if they give a committment? Or is it more likely that they will say anything to try to get votes? And then cosy up to their pals once in office?
  • natweststaffmember
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    "I don't think it is right to make policy decisions without a detailed analysis of the issues."...


    "I agree with you that bank customers must be compensated quickly and fairly for ANY UNFAIR charges that they have had to pay..."

    (He does not say that the charges are unfair but that IF THERE ANY WHICH ARE UNFAIR customers should be compensated quickly.Who decides what is unfair in each account holder's circumstances?)

    "So I 've asked my Shadow Treasury Team to LOOK AT YOUR SUGGESTION"

    (They can look at it and reject it)

    However if they state that it is now their policy that all bank charges since 2005 will be refunded, that would be worthwhile.(since the FSA Waiver goes back to July 2001 then it is not worthwhile whatsoever).
    They could give a committment to definitely legislate if necessary (and retrospectively if necessary) to make all such charges illegal to the extent that they are penalties(that part of the OFT test case has already been decided, They're not penalties), whether or not the House of Lords agrees that they should be subject to the fairness rule.
    But then, can we trust what the politicians say, even if they give a committment? Or is it more likely that they will say anything to try to get votes? And then cosy up to their pals once in office?

    This is hardly a major policy decision but merely a commitment.
    I have not worked for NatWest Bank since February 2009

    This username is no longer active.
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
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    Gotoguy wrote: »
    It really doesn't matter if Mr Cameron agrees that unfair charges should be refunded, as the case is yet to be resolved and therefore the charges will only be declared unfair if the banks lose the case. Once the case is resolved the banks will either have to pay up or not ,as it will be decided by Law. I am sure Mr. Cameron already knew this and this is just some good PR.


    That actually isn't true.

    The case does not look at whether charges should be paid back - it looks at the fairness of charges - as does the OFT.

    The issue of payback is separate - and as I say in the new story - the fact Cameron has committed to payback is important.

    It means assuming we do get the result as necessary at the very least have an expectation if the Conservatives in power that there should be a system of application for money back rather than the need for court or ombudsman action.

    If there isn't then there is a broken promise - and something we will of course do our damnest to hold them to account.

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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  • patman99
    patman99 Posts: 8,532 Forumite
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    Tony Blair promised us a vote on wether we should remain part of the EU, we are still waiting 12 years on. It will be the same for bank charges (especially when you consider 9 out of 10 bank directors are Conservative supporters
    Never Knowingly Understood.

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  • MothballsWallet
    MothballsWallet Posts: 15,852 Forumite
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    I love how Martin opens his letters to David Cameron as "Dear Mr Cameron", yet David Cameron opens his reply with "Dear Martin". Who taught Cameron etiquette? :D
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