Please give your feedback on personal current accounts

Former_MSE_Wendy

[title=http://images2.moneysavingexpert.com/images/dp/wtd_underline.gif] What's this all about?[/title]
The Office of Fair Trading has invited MoneySavingExpert to a meeting next week to discuss how the current account market can be improved for consumers.

Although it did not feel able to continue with the test case into unfair charges it still has significant concerns about the bank account market, particularly unarranged overdrafts, so is looking for views on how it could be better going forward.

We’d like to take along MoneySavers’ views, so please let us know your thoughts.

[title=http://images2.moneysavingexpert.com/images/dp/wtd_underline.gif] What it wants to know[/title]
There are three main areas the OFT will be looking into:

Control. It thinks consumers need greater ability to manage their finances, both for their own interests and to ensure that bank accounts are more competitive. As a minimum it is looking at giving consumers the choice, rather than the banks, whether a payment goes into unarranged overdraft or not.

Clarity and predictability. The OFT says that current charges are not simple enough to understand or compare with other forms of short term credit eg Cheap Loans are much cheaper than an unauthorised overdraft. (To compare charges with different banks see the Bank charges Comparison tool.)

Responsibility. It will be looking at when lending through unarranged overdrafts is appropriate, especially to customers who could be better off borrowing money elsewhere.

Please reply with your feedback below

[title=http://images2.moneysavingexpert.com/images/dp/wtd_underline.gif] What will happen next?[/title]
Depending on the results of its discussions with consumers groups and the banks the OFT will look at making a number of recommendations by the end of March 2010, possibly ranging from voluntary action (which could be supported by amendments to the Lending Code and guidance issued by the OFT, for example) to legislative change. Details of these will be included in our weekly email.

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minerva_windsong

Banks should be legally required to give you at least 30 days (preferably 90 days) notice before your overdraft stops being interest free

Also, for a student account, there needs to be a determined point at which you can apply for it, which I think should be when you get your A-level results.

sarahs999

When you transfer money between banks it should be instant. For some banks now it is, yet it is not always clear whether or not your transaction will be included under the 'faster payment' scheme, so it is always a lottery deciding which day your payment should go out. There is no excuse for banks having such long transfer times in this digital age, it is clearly an excuse to hold on to money to gain interest.

coupleuk

Not connected with the bank charges scandal but here's what I would like my bank to do (some USA banks do this) .....

Every time you spend money on your Debit Card, the amount is automatically rounded-up to the next £, with that extra amount transfered into your savings account.

Example:

Spend £52.67 at Tesco and your bank debits £53.00 from your current account, but credits 33p into your savings account.

You won't really notice those 33p's being deducted, but you "benefit" from the increase in your savings.

Simples!

exel1966

coupleuk wrote: »

Not connected with the bank charges scandal but here's what I would like my bank to do (some USA banks do this) .....

Every time you spend money on your Debit Card, the amount is automatically rounded-up to the next £, with that extra amount transfered into your savings account.

Example:

Spend £52.67 at Tesco and your bank debits £53.00 from your current account, but credits 33p into your savings account.

You won't really notice those 33p's being deducted, but you "benefit" from the increase in your savings.

Simples!

Then get a Lloyds account, they've been operating this system for about 4 years now.
Many of us here profitted to the tune of £100 when it first started as savings were doubled by the bank themselves.

http://www.lloydstsb.com/savings/save_the_change.asp

smala01

I have had a nigthmare week trying to understand what interest i'm getting on all of my accounts. On some occasions even the call center operator has no idea!

1) Statements (online / paper) should show the interest rate.

2) Statements should show the exact name of the product so you actually have a chance of cross referencing your account to the terms and conditions.

Andy

Drama_Queen

• Banks should not charge you for going outside your arranged overdraft if it's only pennies - it's ridiculous - especially as it is an automated charge and no one has to physically intervene.
• Banks should give you the opportunity to repay any excess of overdraft before charging - within the month
• Banks should not try their utmost to get as much money out of you as possible, they should be trying to help you manage your finances by giving sensible advice and helping those who struggle to manage their own finances - RESPONSIBILITY
• Charges and fees often hit those who can least afford it at a time when they need literally every penny - each case should be looked at individually and if redundancy, sickness or bereavement of spouse or person you depend on for example is involved, they should not treat you like a common "criminal" - especially if the account has been running reasonably well for the previous 12 months.

sandyl_2

Herewith my thoughts and frustrations:

1. Lloyds only allow a maximum of £10K per transaction per 24 hour period (although the website does not specify what this 24 hour period is - it certainly isn't calculated on the 24 hour clock). Their excuse is that this is to protect me the customer......

2. Electronic transfers should take place on the same day if completed before 1200. No exceptions.

3. All interest rates should be shown on the website statement pages. Given that banks offer one rate then close this, it is essential that you understand what your specific account is receiving.

4. Banks should give 30 day notice of all changes to their interest rates, in particular to special offers that are due to expire.

I would also like to share a problem I had with Ulster Bank. When I wrote and asked for my savings account to be closed and the balance transferred, they actually sent me a cheque (and this after banks have stated they want to abolish cheques). As a result of this, I estimate that I have lost a minimum of 10 days interest. I am aggressively pursuing this with them.

The above example is how banks manipulate customer's money to their advantage and continually get away with it. Their priority is not the customer but the profit to be extracted from them. As far as I am concerned this is daylight robbery.

exel1966

The Faster Payment system should be used and honoured by the banks the way it was intended. Most banks have stalled on this or set rediculously low limits on FP transfers. Minimum/maximum limits should be made clear rather than having to guess what the set min/max might be on a daily basis.

ALL accounts should show the current (and possibly historical) AER / APR payable in real time when online or at statement issue date if on paper.

Overdrafts should show a validity date/review date and APR chargeable.

Customers should also be made to take responsibility for managing accounts !

jdifa

Would treating customers fairly be a good idea?

Steph_LJW

My Bank RBS only gives I think 16 days from an unathorized payment coming out to when they take the charge, most people get paid monthly as I do, I don't think that it is fair to give customers only 16 days before they take the charge, thus putting you further in debt and getting charged again, which has happend to me. I only have one source of income, which is my monthly wage, banks should give at least 30 days to give the customer chance to get paid before they take the money.