MSE News: CONFIRMED - OFT gives up bank charges battle

kittiej

Because you know as a consumer that shops make a profit out of selling things, just like the banks sell loans or mortgages.

I would not expect to go to Mr T's and be charged 3 times for 1 pint of milk at the checkout just because they can, and then to be told that either I pay up or be charged to put the pint of milk back.

moo_cow

Maybe we should charge them extortionate amounts of money everytime they mess up! Oh and just a thought, when they mess up and they ask us for proof of the charges we may or may not have incurred from other companies as a result of their incompetance, how come they don't show us the same courtesy when they take charges from us. Why don't they be made to prove this is what it has cost them?

gobbo

If you are earning over £500 a week then you're not doing so bad. What about cash machines , what about changing to a nearer bank or post office ?

I did say you may have problems ith some companies paying cash

moo_cow wrote: »

Well there's a slight problem with that for us gobbo. We live 5 miles away from our bank (nationwide) and they will only let us draw £500 per day from the branch. Also, it still doesn't stop bank errors as said in one of my earlier posts. So there are still headaches to be had from actually having an account. Also we are stuck in this cycle of certain companies only accepting direct debits/standing orders. And again the general public are abused by having to pay more for certain cash payments. ie: £4.50 payment processing fee from the likes of BT. More for electricity and gas payments if you're not paying through the bank. It's all unfair. How much longer before any kind of cash payments are phased out altogether? Enter greedy banks.................

Alpine_Star

noh wrote: »

The costs are not hidden.
Every bank is obliged to publish their fees.

Not quite the conclusion of the OFT Market Study:

• complexity in the way that unarranged overdraft charges were implemented, which made it hard for consumers to predict when they would be charged, coupled with a lack of mechanisms for consumers to exercise control or opt out of situations that incur high charges

• low levels of transparency on unarranged overdraft charges, forgone interest and other fees. These elements were the least visible5 to consumers and were not effectively competed on by PCA providers


And what is even more hidden is why the charges are made in the first place and in fact something the banks don't publish at all.

moo_cow

'If you are earning over £500 a week then you're not doing so bad. What about cash machines , what about changing to a nearer bank or post office ?

I did say you may have problems ith some companies paying cash'


Who said anything about getting paid £500 per week? Have you been drinking too much? We get paid a MONTHLY salary! Cash machines, again, 5 miles away!
There are no nearer banks or post offices. Our village post office close 2 years ago. We are rural. for us, that's it. that's our lot.

kittiej

Thanks Alpine star.

moo cow I too wondered where the £500 per week came from you lucky thing lol.

moo_cow

LOL kittiej, I was just thinking, why am I looking for money saving tips with an income of £500 per week! Boy, I wish!

kittiej

Just as a side thought.

Have you been over to the debt free wannabee board for help re cutting back a bit?

Not that some of the peeps on this thread would even suggest such a thing seeing as though looking at your bank account every day seems to be their only answer lol.

moo_cow

yes kittiej, I often pop on to the dfw boards for great tips. lots of printable vouchers too for freebies. after struggling for a little while now due to a big drop in incomeI have had to become extremely thrifty. It's a struggle but we're just about coping. Maybe things will be a bit brighter in 2010. who knows? I suppose we have to be optimistic. LOL!

gobbo

Yes Some people seem to think that banks should be charities not businesses , if the banks were fully nationalised like post office telephones / british telecom used to be ,, the charges would be much higher than they are now , I can remember what British Telecom used to charge before it became a business (privatised) and it was much higher than it is now , so you have to be carefull not to chuck the baby out with the bathwater , much better competition than everyone being charged huge amounts of fees.

Looking to Europe , I know someone with a spanish bank account and there the charges are much higher than here , you are charged 0.5% for every DEPOSIT you make into the bank , you are charged for your switch card , an annual fee for your account , and other charges as well , and you are not permitted to overdraw at all , so in some ways you could argue we don't know when we are well off

noh wrote: »

Can you explain why you think that is wrong?

As as been said many tmes befor banks are running a bussiness and exist to make a profit.