The future of banking on the back of reclaiming Discussion Area

oldwiring

Chrysalis wrote:

nominal = the banks costs + small profit.

or are you suggesting it costs the bank £35 in some cases higher to automatically block a payment and send out a letter?

Iam not defendimg or otherwise the amount of any charge. But firstly no process is completely automated. Peop;e intrude; for one someone has got to input the stop abd there may be, there was in my day at least, someone to check and approve to reduce errors. There are premises, other iinfrastructure,machinery etc. to be met to run the whole show.

And mine has to pay my pension:D

krisskross

Chrysalis wrote:

your points are good but it still doesnt make their charges fair. Do you agree its hard to get your finances in order if the bank charges half your weekly earnings for one blocked payment?

Chrysalis you HAVE to sort out how you manage your finances. You may get your charges back this time but I feel the loophole will be closed very soon. Charges for mismanagement of a bank account will still be in place, albeit they will be less. However even a small charge multiplied several times will be financial ruin for someone who doesn't have a small cushion. I do wonder how many of the very vociferous charge claim backers will be in exactly the same position again a few months down the line, having learned nothing of management of their own financial affairs.

Tootsie_Roll

Chrysalis wrote:

what happens if someone tells you to pay by standing order ie. rent to landlord they dont accept cash in hand, then the bank takes a long time to process a cheque and thus you have insufficent funds.

second example you get benefits and their is a problem (very common) and again you short.

another example a company tries to take their money early or too much via direct debit when normally you would be fine.

another example you have loan with bank, their policy states you pay them by direct debit and if you cancel the direct debit you void the agreement but you lose your job and your income stops, you have to leave direct debit in place so charges rack up. (this happened to me and is 80% of my charges over last 6 years)

your points are good but it still doesnt make their charges fair. Do you agree its hard to get your finances in order if the bank charges half your weekly earnings for one blocked payment?

Taking your points one at a time:
1) Banks take a set time to clear cheques, however many days that is may depend on your bank and/or the type of account but it is always the same. So in simple terms, if this happens regularly you have a cash flow problem that you need to resolve by changing the SO date or ensuring you get the cheque earlier or by ensuring the funds are there from another source. It's not the banks fault you have insufficient funds.
2) As above, change the dates payments go out.
3) Claim back under the DD guarantee, again not the banks fault.
4) Cancel the DD - you and the bank have no choice, voiding your agreement means very little anyway if you can't meet the repayments, you have already broken the t's&c's.

So you are responsible for managing your finances - do it and stop making excuses or you will always be having the same problems.

Chrysalis

krisskross wrote:

Chrysalis you HAVE to sort out how you manage your finances. You may get your charges back this time but I feel the loophole will be closed very soon. Charges for mismanagement of a bank account will still be in place, albeit they will be less. However even a small charge multiplied several times will be financial ruin for someone who doesn't have a small cushion. I do wonder how many of the very vociferous charge claim backers will be in exactly the same position again a few months down the line, having learned nothing of management of their own financial affairs.

I have had one charge in the past 3 months. I am not one who regurly has blocked payments.

I am amazed how people are claiming back thousands, hwoever my amount is £430 for 6 years of charges, some of them been £90 so you can see its not that many but just large fees.

I am protesting for the future charges to be reduced, but everytime someone puts the blaim 100% on the account holder I will argue the point its not entirely their fault.

I repeat.

How can one get their finances in order when the bank repeatedly is charging them for every blocked payment.

Example - payment gets blocked 25pence shortfall.
Fee is £50
Person gets £150 a week, bills cost £140 a week so £10 cushion.
Because of £50 fee payment gets blocked again this month.
This causing negative £40 each month person gets more and more in the mess.

If bank had only charged £5 the person would have recovered.

You will probably ask how would they get 25pence short in the first place which is a good question but the banks charging these fees dont help anyone except themselves.

The truth is they are profiting heavily from these charges,

Also I have a recorded phonecall from a senior manager at my bank that the process of blocking payments and sending out the letters is human free.

Chrysalis

Tootsie_Roll wrote:

Taking your points one at a time:
1) Banks take a set time to clear cheques, however many days that is may depend on your bank and/or the type of account but it is always the same. So in simple terms, if this happens regularly you have a cash flow problem that you need to resolve by changing the SO date or ensuring you get the cheque earlier or by ensuring the funds are there from another source. It's not the banks fault you have insufficient funds.
2) As above, change the dates payments go out.
3) Claim back under the DD guarantee, again not the banks fault.
4) Cancel the DD - you and the bank have no choice, voiding your agreement means very little anyway if you can't meet the repayments, you have already broken the t's&c's.

So you are responsible for managing your finances - do it and stop making excuses or you will always be having the same problems.

Lets go back to point 1.

If you have insufficent funds because the bank takes 2 weeks to clear a cheque whos fault is it and why?

Point 2

What happens if changing the dates makes bill payments late?

On point 4 what actually happened in that situation was the bank cleared the payments for the loan making me go further overdrawn but charged me for it, they threatened me if I cancelled the direct debit they would pursue me for the full debt.

Chrysalis

to add I am not claiming back my charges.

This isnt a loophole it can only be closed if the law is changed.

What you and others are probably scared off is that when the banks are forced to rehaul their charges (it will happen its a matter of when) they will of course look to regernate the profits from elsewhere, they will likely recover them from atm charges and increasing the cost of lending money, which is more likely to affect a broader amount of people, which in my view at least it spreds the cost of banking around a bit.

Tootsie_Roll

Chrysalis wrote:

Lets go back to point 1.

If you have insufficent funds because the bank takes 2 weeks to clear a cheque whos fault is it and why?

Point 2

What happens if changing the dates makes bill payments late?

On point 4 what actually happened in that situation was the bank cleared the payments for the loan making me go further overdrawn but charged me for it, they threatened me if I cancelled the direct debit they would pursue me for the full debt.

1) Why does there have to be blame ? If it takes two weeks because of the type of account/bank you are with then it takes two weeks - you have to work with the system not against it. If you haven't ensured there are sufficient funds in your account (if necessary allowing 2 weeks) then it is your fault if the payment gets bounced.

2) So be it - would you prefer to be a couple of days late or incur charges ? Alternatively review the way you manage money and see if you can work around it.

4) They are entitled to do this, in practise though if you are in financial difficulty to the degree that you cannot possibly have funds in your account at the right time (through job loss in your example), then having them call the loan in will not make much difference, at least you're not adding to the problem by racking up charges as well.

Tootsie_Roll

Chrysalis wrote:

which in my view at least it spreds the cost of banking around a bit.

This is what annoys people, you keep your account in order then others who just can't be bothered ruin it for the majority.

Chrysalis

tootise roll I will redefine.

I mean if the cheque normally takes a week, but on one occasion it takes 2 weeks.

Chrysalis

who says the majority dont have blocked direct debits etc?

I wouldnt be surprised if it was a minority of wealthy people.