Bank charges are fair!

ajharris

I appreciate that I am not going to make many friends on here with this thread but I will write this anyway. As everyone knows there was a court case recently regarding the banks overdraft charges. Persoanally I am glad that the banks did win the case. If the ruling had gone against them then we could find ourselves paying for many of the services/facilities which have always been free. This would affect people who never go overdrawn and would effectively mean that they are being punished for the overspending of others.

We hear about cases where people are charged thirty five pounds for going just a few pence overdrawn. These decisions are made by a computer which does not show discretion. If you do not make a habit of going overdrawn then almost invariably the bank will refund you in these instances as a good will gesture.

If people need more money they should speak with their bank first and arrange an overdraft. Going overdrawn without permission or exceeding an authorised overdraft is borrowing money without permission, this is wholly unacceptable. How would you feel if someone borrowed your money without asking?

People commonly complain about the disparity between the cost of sending the overdraft letter and what is charged by the bank. That is business I am afraid. Think of all the things which are made dirt cheap in China which are then sold with a massive mark up over here on our high streets. Why single out banks?

Banks offer total transparency, you can find out beforehand what you will be charged for going overdrawn without permission. These charges are not cloaked. Furthermore we live in an age where it is so easy to keep track of your money, on line, telephone, in branch and also text message banking. It has never been easier.

Some people claimed that they were owed thousands by the banks. For this to be the case they must have been perpetually and severely abusing their accounts. In my opinion the bank owed them nothing and common sense prevailed in the court.

Lokolo

We've had this discussion maaaaaany times.

The regular users on this part of the forum will agree with bank charges.

The regular users on the Reclaims board will disagree with you.

*Chattie*

and the rest really dont care

walesrob

One point that is raised quite often about bank charges, and is quite valid I think, is that banks will allow you to go over and above your overdraft and then happily slap on the charges. What I would like to see is banks quite simply refusing a transaction at point of sale if it means going over an overdraft/overdrawn.

PandorasJar

I see no reason that people should use what isn't theirs and not have to repay extra for it. I agree with overcharge rates, what I don't agree with is where they don't let you know properly.

My friend was told that she had a secondary over-draft (can't remember the name for it). She was led to believe it was the same as her original, except with a one off monthly fee. In fact it was a daily fee. They never sent paperwork, and she never signed anything as it was an automatic thing unless you personally took your name off (which I did) She is in the process of getting the money back now and I believe she deserves it back.

I also think that there should be leeway on things like late payments from work.. several of my friends recently went overdrawn as their work cheques bounced and rent came out straight after, making them hugely overdrawn. I think that in this case, the banks should give a little leeway if possible, but the work should definitely have some responsibility.

I also don't agree with cases where people believe the have shut an account and it is just gathering more charges.

If you are made aware though, you don't have a leg to stand on, why should you get money that isn't yours without an extra charge?

P

marydot

*Chattie* wrote: »

and the rest really dont care

LOL

Im paying off 3 loans at the moment but most of the balance is interest that im paying back, im on jsa and i ve managed to slash my payments down to 5 pound a month to each of them, dont ever let them banks worry you as they know they are at the bottom of the debt pile.As long as you make some kind of agreement banks are ok. I took advice from cccs long ago not to worry about banks because its very rare they will take you to court!!

I always keep my rent and tv licence and gas and electric up to date and food on table.theses are the most important bills.:T The banks dont worry about you so why worry about them!!

PandorasJar

walesrob wrote: »

One point that is raised quite often about bank charges, and is quite valid I think, is that banks will allow you to go over and above your overdraft and then happily slap on the charges. What I would like to see is banks quite simply refusing a transaction at point of sale if it means going over an overdraft/overdrawn.

If this is the case, then people can get an electron, which does exactly that. However they charge you for each time you are told this.

It's easy enough for people to check their accounts, if you are in town, there are banks and holes in the wall. Online, online banking etc etc... and if in doubt... don't do it. If it's a necessary payment, then it won't matter whether they let you know or not anyway because it will still be made.

As much as the banks are bad, there is a certain amount of flack they will get whatever they do... let you borrow and charge you and people will be annoyed. Don't let you go over and people will be annoyed as they needed to make a food shop etc. It's a bit of a catch-22.

Take supermarkets... their prices are raised because of shoplifting. Banks are much the same, the charges are up there, because lots won't get repaid.

P

vaporate

I think people are missing the point here. Banks screw you as soon as you are in your overdraft and can only afford to pay it back over a given time, then turn nasty.

Not clear cut.

Example, student uses overdraft. Student graduates. Student takes ages to find a job because the UK job marked is fooked, no income. Bank screws graduate.

(JSA not enough)

Inactive

vaporate wrote: »

Example, student uses overdraft. Student graduates. Student takes ages to find a job because the UK job marked is fooked, no income. Bank screws graduate.

(JSA not enough)

Student/s need to learn that the world doesn't owe them a living.;)

Student/s need to budget accordingly.

vaporate

Inactive wrote: »

Student/s need to learn that the world doesn't owe them a living.;)

Student/s need to budget accordingly.

You can't budget with no money! (student loan not enough, including the fact that thousands of stduents had their loan money delayed.

By the way, I'm not talking from experience.

Good example though.

glider3560

vaporate wrote: »

I think people are missing the point here. Banks screw you as soon as you are in your overdraft and can only afford to pay it back over a given time, then turn nasty.

Not clear cut.

Example, student uses overdraft. Student graduates. Student takes ages to find a job because the UK job marked is fooked, no income. Bank screws graduate.

(JSA not enough)

I'm a student. I don't earn much. My mum doesn't work. My dad doesn't earn much. I get by. I only use my overdraft to my advantage (i.e. putting it in a savings account). I've never had a bank charge. I budget well and live by my means, which means I can't afford to go partying every night like some students but it does mean that I'll graduate without the worry of paying back an overdraft.