MSE News: Bank charges: banks win test case appeal

Charlie94

Pammy wrote: »

From the outset I have seen people debate the rights and wrongs of the bank charges but money aside who regulates the process to which the banks actually take charges?

My situation was one where I was told I had a very serious illness, as a result my life was turned on its head for a while. Going over a pound or two for a period of time resulted in massive lump sum of charges. I knew when this money came out all my direct debits would hit resulting in further charges.

I literally begged Abbey National not to take the money out in one go, eventually talking to their head office. Nobody was willing to help, my circumstances were not taken into consideration, infact they were rather cold about it.

As a result of the money coming out I was sent on a downward spiral if debt, more charges hitting every month.

If it had been anyone else that was owed money legally I am able nnegociate a pay back solution. But not in this case, they were able to do what they wanted to and I had no say.

Todays ruling for me wasnt about the money, it was about the banks power of doing what they want. They were happy for me to spiral into debt, it meant they could get more money out of my situation.

Is the message now that this is acceptable?

Exactly! The whole point of bank overdraft fines was to make a profit out of peoples mistakes or hardship. I did the same as you and made a mistake when I was seriously ill and went over my overdraft by only a few pounds. I then got charged a extorniate fine which sent me further into trouble. I did n't miss out on a lot from todays ruling but am still angry about the way it was taken from me.

Overdraft charges are there to make an easy profit for banks. I can't believe some people are swallowing the banks argument that without fines we would not have free banking. In the past people could not go over their fixed overdraft limit and there were not the fines we have today yet we still had free banking. The free banking argument has just been devised as a scaremongering tactic to garner support for their case. Sadly some people have accepted it.

We are not asking the banks to be caring , altruistic institutions but to be fair in their fines for exceeding your overdraft. They are a business and need to make a profit but its not fair to rip people off. The fines they were imposing were a rip off.

Oh and well done to the office of Fair trading for helping us out. I wish they had never got involved as the banks would still be paying out. Todays decision just shows who really runs this country, the rich bankers.

onestressedwoman

I had been assured a refund this week in fact it was due to be paid tomorrow! I have been proven a hardship case and have signed and completed acceptance returned before ruling today - no one can tell me if they are able to renege on this - being in writing does it stand as a contract would? - what happens to us that are in dire straights - no one can answer these questions have you any idea

Premier_2

euronorris wrote: »

Firstly you aren't. The notion that has been fed to you all, that it is the revenue generated by charges which provide for free banking, is absurd! There was free banking in the past before all of these charges!

Secondly. The service you currently receive is not free, you are only benefitting from not being charged for it. Why do so many of you believe you are entitled to free banking?

You seem to have contradicted yourself if it is to be believed that free banking existed prior to bank charges. When were there ever no bank charges?

This site is all about getting something for nothing, (or at least a discounted price). That means those who are paying full whack are subsidising it.
What you need to do is learn how not to incur any banking fees like so many of us have done. :beer:

Stephenbw

euronorris wrote: »

And yet it still happens....

We have deaths every year due to them forgoing the basic necessity of heat in favour of trying to pay other bills. Such as, for instance, bank charges, or any kind of credit facility that the bank should never have allowed to someone on such a low income in the first place.

Not everything is black and white. Open your eyes!

Nonsense, I am an early retiree myself and live on a small pension, my parents and most of my friends are pensioners and ALL of them have absolutely no problem paying their fuel bills.

Yes, people die of hyperthermia every winter because they do not put on their heating, not because they are using their winter fuel allowance to pay bank charges.

ollski

Doc_N wrote: »

The only difference, of course, is that you took their money without permission, and you'd already agreed in advance to the charge by accepting the T&C.

I didn't take their money, they paid it out without my permission on a direct debit which apparantly goes out around a certain time of the month whenever somebody can be bothered to request it. If they would have told me there was a request for it I could have said "don't bother, I'll sort it myself". I wonder if the banks will invest some of these billions they are saving in an online system to tell you of pending transactions to help customers prevent incurring charges....I won't hold my breath!

Oh and of course if it's agreed in the t & c's it's ok?, I'm not sure I buy that. I'm a heating engineer and am frequently hearing stories of emergency rip - off guys being prosecuted by trading standards for over charging for work despite the charges being clearly outlined in terms and conditions and for doing actual real physical work although they are nowhere near in the same league as the charges levied by the banks.

euronorris

Premier wrote: »

You seem to have contradicted yourself if it is to be believed that free banking existed prior to bank charges. When were there ever no bank charges?

This site is all about getting something for nothing, (or at least a discounted price). That means those who are paying full whack are subsidising it.
What you need to do is learn how not to incur any banking fees like so many of us have done. :beer:

As I am sure you are aware, I was referring to charges levied on unauthorised overdrafts. There were no such charges as there was no such thing as an unauthorised overdraft. I don't understand why there is now?

All the banks are doing currently is essentially taking money from themselves as a large number of the people affected have no way of repaying the debt at the current level it's being incurred. For whose benefit is that? The debt will only continue to grow and grow and the bank will then have put itself into debt simply because it was greedy!

euronorris

Stephenbw wrote: »

Nonsense, I am an early retiree myself and live on a small pension, my parents and most of my friends are pensioners and ALL of them have absolutely no problem paying their fuel bills.

Yes, people die of hyperthermia every winter because they do not put on their heating, not because they are using their winter fuel allowance to pay bank charges.

Oh, I'm sorry. You've met every other retiree in the country and asked them this question then I assume?

superdood

euronorris wrote: »

Oh, I'm sorry. You've met every other retiree in the country and asked them this question then I assume?

have you?

No, seriously?

Stephenbw

euronorris wrote: »

Oh, I'm sorry.

Apology accepted

euronorris wrote: »

You've met every other retiree in the country and asked them this question then I assume?

I haven't, have you?

A link proving your assertion that people die because they are forced to pay bank charges instead of fuel bills will suffice.

Premier_2

euronorris wrote: »

As I am sure you are aware, I was referring to charges levied on unauthorised overdrafts. There were no such charges as there was no such thing as an unauthorised overdraft. I don't understand why there is now?

...

The world is a different place now. Cheques (some supported by cheque guarantee cards), debit cards, direct debits, etc.

But you still have a choice. You can take good financial care and not incur unauthorised overdraft fees by not spending money you don't have, or you can simply deal with cash by withdrawing such money over the counter like in the old days if that is what you prefer.

or you can spend money you haven't got and be charged for it