Bank Charges - Banks Win!

bengal-stripe

never-in-doubt wrote: »

The 8% statutory interest rate is not classed as 'savings' though is it?

But those who "invested" in charges and got a refund, are better off then the prudent ones (or timid ones)
who put their dosh into a savings account!

dzug1

oscar52 wrote: »

Cant we just go down the the old/previous route of "they are a penalty and if you dont give them back I will go to FOS"

No.
An earlier court ruling said that they were not penalties. That ruling was not overturned by yesterday's result.

vet8

Extant wrote: »

Care to find anything to cite such a claim?

Banks would love it if half their user base was on paid-for accounts.

It is in the Telegraph today and I have also read it several times in recent weeks.

vet8

The banks clearly expected to lose this case. Otherwise why have Natwest suddenly found that they can manage to charge people only £5 when previously they were charging £38 for a bounced DD. This alone shows that this is an unnecessary and extortionate charge, they can manage now by charging 8 times less without going bankrupt.

The other point that really gets me is when the holier-than-thou brigade cite the banks T & Cs endlessly. When I opened my account and signed the form the charge was nowhere near £38 for a bounced DD. It has gone up several times. Yes the bank send me a bit of paper detailing the new charges, but the fact it is I did not agree to them, they were imposed on me. I could change my account, but what is the point when they are all charging the same.

As I said earlier this will mean the end of free banking totally, the banks will now charge exactly what they want with impunity. Everyone will soon pay those in debt or not.

bendix

terrorfirma wrote: »

I keep seeing the phrase 'free banking' banded about. Has everyone forgotten the billions of taxpayers money pumped into the banks to keep them afloat. Maybe today's decision on bank charges has been made with thought of the estimated £2.6bn a year revenue made by the banks raking in these extortionate charges. You don't have to be a financial genius to see that a charge of £35 for a computer generated letter telling you your account is pennies in the red is extortionate.

The £35 is not meant to be an admin cost - it's meant to be a penal charge to discourage people from doing it again. And it's not about being in the red. You can go in the red, so long as you organise it with the bank. That doesnt seem too hard a thing to do.

Let's turn the tables. If someone took money from you on a regular basis without asking you, would you be happy? If you could fix a charge to stop them doing it, what would it be?

I'm 100% behind this legal decision.

bendix

vet8 wrote: »

As I said earlier this will mean the end of free banking totally, the banks will now charge exactly what they want with impunity. Everyone will soon pay those in debt or not.

Incredibly dodgy logic. There is absolutely no basis in fact on this.

The charges are excessive on purpose. They are there to discourage people from taking the bank's money without permission.

I find it appalling that MSE has been encouraging members to reclaim charges - this site is meant to be about money saving and financial prudence, NOT encouraging people to benefit from not being able to manage their money.

VanCrack

@ Lokolo, you seem to think everyone is a homeowner and has a mortgage and this just goes to show how out of touch with the real world you are. A lot of people can't afford to save for a washing machine or tv or any other simple luxury that you would take for granted let alone save for a mortgage! These are the people that can least afford to be penalised by bank charges for being a pound or two short when they're trying to juggle expenses and bills on minimum wage. In fact, minimum wage is set so hopelesly low that it has to be topped up with working tax credits by the government, the very government that sets the minimum wage! So it's hardly suprising quite a lot of people fall foul of bank charges, a single charge can be as much, if not more, than a day's pay for a lot of people. Common sense from the people that work in the bank branches with more autonomy than they are allowed now would be step in the right direction, as opposed to the impersonal, faceless, generalising that computerised banking has become. Some sort of proportionality to the misdemeanor a person brings to their account surely should be in place also.

Lokolo

VanCrack wrote: »

@ Lokolo, you seem to think everyone is a homeowner and has a mortgage and this just goes to show how out of touch with the real world you are. A lot of people can't afford to save for a washing machine or tv or any other simple luxury that you would take for granted let alone save for a mortgage! These are the people that can least afford to be penalised by bank charges for being a pound or two short when they're trying to juggle expenses and bills on minimum wage. In fact, minimum wage is set so hopelesly low that it has to be topped up with working tax credits by the government, the very government that sets the minimum wage! So it's hardly suprising quite a lot of people fall foul of bank charges, a single charge can be as much, if not more, than a day's pay for a lot of people. Common sense from the people that work in the bank branches with more autonomy than they are allowed now would be step in the right direction, as opposed to the impersonal, faceless, generalising that computerised banking has become. Some sort of proportionality to the misdemeanor a person brings to their account surely should be in place also.

Because everyone who is claiming back charges has kids, mortgages and is on minimum wage. Get a grip. Most people who want to reclaim charges do have mortgages which they clearly did not think through, could cut back and are too naiive to realise this.

Don't believe me? Go to the DFW board. There are people there, for a family of 4, who live off £4k a year after rent, council tax, water and work related neccessities. If you are interested, here is the link: http://forums.moneysavingexpert.com/showthread.html?t=1980255

Everyone seems to get the impression that I think everyone can cut back. I am not saying everyone can, but a lot of people bloody well can and they choose not to budget, to spend more than they earn and so fourth.

bendix

There also seems to be a prevailing sense in the UK now that a middle class life is the automatic right of everyone, irrespective of your ability to pay for it. Anyone over 30 knows that this is a new culture - previously, people who could afford to have tvs had them. Those who couldn't, didn't.

At what point did that all change? Ahhhh, I remember - the introduction of easy credit coupled with the 'it's me entitlement' culture.

oscar52

bendix wrote: »

The £35 is not meant to be an admin cost - it's meant to be a penal charge to discourage people from doing it again

so why not stop the payment at source? - surely the embarrasment caused, that they banks try to save us from, would do the same thing? Personally, I would rather be embarrassed than have a carton of milk cost 39 quid because i forgot about a direct debit going out the day before.
Banks dont want to refuse the transaction as ten they cant charge hefty fees.