MSE News: CONFIRMED - OFT gives up bank charges battle

gaz2954

chja wrote: »

This is good news for those of us who are able to run out accounts properly and wish to continue to enjoy free banking.

Bank charges are avoidable. Simply do not take money that does not belong to you.

WHAT AN IDIOTIC STATEMENT people like you make me mad sometimes it is unavoidable to not go over limit if direct debits come on wrong day cheques presented etc its difficult to keep track . I went over my limit with Nat West it is was £500 by £50 do you know how much charges were made over 3 months on my personal account ? £4200 yes £4200 that is abusive charges which Nasty Westy said were clear transparent etc how do you justify such charges they are unbelievable and your statement means its my fault Im debited with £4200 please justify such a charge !! Gaz

gaz2954

Frank_John wrote: »

Frank John wrote:
I don't understand what all the fuss is about. I have been a bank customer for 35 years and I have never been charged for going overdrawn. The reason why is not because I am wealthy. It is because I accept that it is my responsibility to manage my account. Not the banks. I signed an agreement not to issue cheques or other instruments for payment unless there are sufficient funds in my account or within my pre-arranged overdraft facility.I therefore ensure that I don't. Simple really. If I take cash into a shop do you think the shopkeeper will let me walk away with goods costing $200 if I only have $195. I doubt it. If I decided to take the goods anyway I would be arrested for stealing and expect to pay a fine. So please lets try and get it into perspective. If you go over your limit the bank will charge you. If it's a one off and for a small amount for a couple of days, the banks are actually quite reasonable and will almost certainly refund you. They might even extend your overdraft facility. So to finish, lets accept that banks may not be perfect, but this is not their fault so stop this unnecessary bank bashing.

WHAT AN IDIOTIC STATEMENT people like you make me mad sometimes it is unavoidable to not go over limit if direct debits come on wrong day cheques presented etc its difficult to keep track . I went over my limit with Nat West it is was £500 by £50 do you know how much charges were made over 3 months on my personal account ? £4200 yes £4200 that is abusive charges which Nasty Westy said were clear transparent etc how do you justify such charges they are unbelievable and your statement means its my fault Im debited with £4200 please justify such a charge !! Its not that i mind paying a charge if I slip into the red but £4200 over 3 months is ridiculous Gaz

noh

gaz2954 wrote: »

WHAT AN IDIOTIC STATEMENT people like you make me mad sometimes it is unavoidable to not go over limit if direct debits come on wrong day cheques presented etc its difficult to keep track . I went over my limit with Nat West it is was £500 by £50 do you know how much charges were made over 3 months on my personal account ? £4200 yes £4200 that is abusive charges which Nasty Westy said were clear transparent etc how do you justify such charges they are unbelievable and your statement means its my fault Im debited with £4200 please justify such a charge !! Gaz

It's not dificult to keep track. Going over an authourised limit certainly is avoidable many millions of people manage it.
I Simply dont believe your charges were £4200 for a 3 month period.
Care to explain how they reached this level.
If wasn't your fault who's fault was it?

andy12345

We CAN all rest assured that the chances of those "super people" that never get charges will increase as time goes on, especially while the real effects of the credit crunch continue to drill the world economy into a pit of low confidence.

Brightness

Frank_John wrote: »

If it's a one off and for a small amount for a couple of days, the banks are actually quite reasonable and will almost certainly refund you. They might even extend your overdraft facility. So to finish, lets accept that banks may not be perfect, but this is not their fault so stop this unnecessary bank bashing.

I'm sorry but I find this quote laughable.....

About 2 momths ago I had a bank charge appear on my online statement. I was really puzzled as I had not at any time gone overdrawn and had made sure that there was some money in my account at all times (trying to be frugal ready for xmas).

I phoned the banking helpline at Nat west and was told that a cheque I had paid in had not cleared when a DD of £1.24 was taken out of my account. I argued this with the guy I was speaking to as I knew that it had cleared - if it hadn't I would have a balance saying xxx in account xxx available. At no time had this happened and I had already phoned the company who had issued the cheque and the money had left their account five days earlier. He refused point blank to do anything so i asked to speak to his boss.

The bos came on the phone and finally agreed that I had not gone overdrawn at all and so he would refund the charge. However, because THAT £38 charge had put me overdrawn by 25p I would have to pay £28 :eek:. I personally can't see how that is fair - they stole money from me and refunded it but then charged me for the privilege of it. - Please Frank John, tell me why I shouldn't bank bash when I have been treated like this? Even the staff in my local bank were shocked.

Incidentally, I am NOT a 'bad' customer. I was offered and booked in for a financial review the other week & a few days later the manager called me and asked why. I said I didn't know but the girl on the counter was most insistent :rolleyes:. He said 'well you don't need one, you keep your account in order and you don't have or want an overdraft so stay home in the warm and I will cancel it!'

My problem is not with the staff of the banks, they are only doing a job and most are really helpful. My problem is with the higher ups who program the system and just fire out charges etc willy nilly. :mad:

gaz2954

noh wrote: »

Simply dont believe your charges were £4200 for a 3 month period.
Care to explain how they reached this level.
If wasn't your fault who's fault was it?

Well if you dont believe me you dont just understand the snowballing effect they charged £35 for bounced direct debits and cheques £28 service charge £35 for paying items and it just took all my salary . Whose fault was it ? I nor anyone else deserved to be charged £4200 in 3 months believe me or not i dont care it actually went in the local paper as i took them to court and got it back that isnt the point other people wouldnt stand up for themselves and let the charges stay .I have all the statements showing the charges I dont have to prove them to you what possible reason have I got to lie its clear you just dont understand how these banks work they give you an umbrella when its sunny and take it away when its raining . As for whose fault it was yes it was mine for working damn hard and not checking where it was but do I deserve or anyone else £4200 in charges thats a no no no and unless the banks are stopped they will do this to other people

noh

Quit the personal messages.
I do know what the charging structures are.
I still find it hard to believe you racked up £4200 of charges in a 3 month period.

Even if that was the figure did you not receive any letters or any statements?
Did you not draw any money from an ATM and notice you were overdrawn?
Did you not ever check your account online?

If you cant take responsibility for your own finances nobody else will.

davidgmmafan

I've noticed a disturbing trend in comments by people who are pro banks, or pro the status quo whichever you prefer.

They largely seem unaware that the way we all look at charges is totally different than the legal fiction the banks created to scrape a win.

They are not penalties, oh no (even though the above people would accept they are and indeed should be punitive), they are charges for a service. If this is so then why doesn't the bank invoice seperately for them? Or putting it another way why should the debt to the bank be put before any other payments owed?

This one change would stop the charges spiral so many people refer to.

Also as I've said many times if you accept the banks argument that the charges pay for free banking then you should be praying people do not take you advice as, if they did, free banking would disappear anyway.

Its just like with credit cards the people who pay thier cards off in full don't make much at all (if anything) for the bank. The big bucks are in the fees and the people who just pay the mimimun each month.

It seems to me inconsistant to say on the one hand, I can't understand what all the fuss is about. Its easy to avoid the charges, the implication being everyone should be like you... Because if that happened the the banks own logic dictates your free banking would be gone for good.

wok_boy

musical_norwich wrote: »

This is actually very good news. I am delighted!

Why should those who knew what the bank charges were, but carried on spending money that wasn't theirs, be rewarded retrospectively for their behaviour by the courts?

This country is going to the dogs due to people spending money that wasn't theirs in the first place: banks, consumers and the government. This judgement is a first sign of a return to common sense and normality.

On the one hand this site encourages being thrifty and living within your means, on the other it believes that the thriftless should be rewarded for their irresponsibility. You can't have it both ways as the courts have said!

In my opinion the "holier than thou" posts like these get right up my nose. Every time I see someone post that others should be more careful with their money makes me shake my head.

It's ok to judge from afar if you've never been in the situation, however I bet if the boot were on the other foot I bet you would complain.

The world isn't black and white were everything is simple and predictable, there are times when people through no fault of their own go overdrawn.

As a famous saying goes "walk a mile in someone elses shoes".

gaz2954

noh wrote: »

Quit the personal messages.
I do know what the charging structures are.
I still find it hard to believe you racked up £4200 of charges in a 3 month period.

Even if that was the figure did you not receive any letters or any statements?
Did you not draw any money from an ATM and notice you were overdrawn?
Did you not ever check your account online?

If you cant take responsibility for your own finances nobody else will.

Of course I received letters I put money in but the snowball effect was when I put in one months wages was eaten up by charges ie £850 in first month so I had no money to pay my mortgage pay for food pay my gas electric telephone and other bills so i had no money to live so then more charges added etc it became a snowball if you cant understand the effect there is something wrong with your thought process . I think you dont understand it because its not happened to you I hope it never does but its TRUE 100% of it . If I cant take responsibility for my own finances no one will you still havent answered my question how can a bank justify £4200 in charges for 3 months you cant and they couldnt and this destroyed my credit as tehy loaded default and defaulted me on my loan as I couldnt pay £4200 in my current account to cover the charges to pay my loan so I was defaulted on my loan and current account and all went to debt collection . If you strip away the charges I was actually £1200 in credit with a limit of £500 could you cope if someone took £4200 in charges and wouldnt pay them back .I dont think so and Im sure Im not the only person that was put in the same position .
Your statement is offensive to the hard working people on here basically stating the £4200 is my fault it isnt the banks are at fault for the cartel they operate on bank charges which people have to fight tooth and nail to try to get some dignity back .