MSE News: OFT delivers 'flaccid' report on future of bank charges

Former_MSE_Alana

This is the discussion thread for the following MSE News Story:

"The Office of Fair Trading (OFT) has delivered its long-awaited report into the future of bank charges but it's seen as a "flaccid" attempt to help consumers avoid huge fees ..."

Read the full story:

OFT delivers 'flaccid' report on future of bank charges

mikeandrach_2

i am trying to reclaim £3000 from lloyds, but just feel like giving up now. there seems to be no will from anyone in a senior position to fight the battle, and even boards such as this seem to have got quieter and quieter as people seem to be giving up. yes, i've made financial mistakes, of a few pounds, and been 'fined' heavily. the banks made mistakes, to the tune of billions of pounds, and get help. great isn't it?

MrLeeLee

mikeandrach wrote: »

i am trying to reclaim £3000 from lloyds, but just feel like giving up now. there seems to be no will from anyone in a senior position to fight the battle, and even boards such as this seem to have got quieter and quieter as people seem to be giving up. yes, i've made financial mistakes, of a few pounds, and been 'fined' heavily. the banks made mistakes, to the tune of billions of pounds, and get help. great isn't it?

I think a lot of people feel the same way you do, I know I do.

mikeandrach_2

i have written to the local tory mp, and labour candidate. the tory mp wrote back saying he agreed with my views and would ask lloyds about my account if i gave him written permission, which i am about to do. the labour candidate hasn't even bothered to acknowledge the letter, despite the fact i have sent it twice and confirmed the address is corect with their party office. i'm not sure how sincere the tory mp is in what he said, but seeing as though in my letter i clealry stated whoever offered their views and help in the clearest way would get my vote, i guess labour have also given upon their next battle!

fatbelly

http://www.oft.gov.uk/news/press/2010/26-10

Is that it?

What use is that?

esmerellda

none whatsoever:mad::mad::mad::mad::mad::mad::mad::mad:

esmerellda

http://news.bbc.co.uk/1/hi/business/8569865.stm


'Weak' report
Overdraft fees are one of the biggest sources of income for High Street banks, and in 2006 generated £2.6bn for them.
After two and half years of litigation the banks won their test case with the OFT when the Supreme Court ruled in December that the OFT did not have the legal powers necessary to challenge the right of banks to charge overdraft fees as they saw fit.
Consumer groups who have been campaigning against "unfair" overdraft fees criticised the OFT's latest pronouncement.
"[We] are very surprised and extremely disappointed at the OFT's press release on bank charges which offers consumers no tangible protection against the imposition of unfair and extortionate charges," said consumer campaign group Legal Beagles.
"The Office of Fair Trading's report, following nearly three years of investigation into the personal current account market in the UK, is extremely weak and does nothing to improve confidence in the regulator or the banks."
Marc Gander of the Consumer Action Group said the OFT had "nothing to cheer about or to congratulate itself about".
"Despite its powers and its influence the OFT has achieved very little," he said.
"It has been defeated on the test case charges issue because it allowed itself to be corralled into dealing with a very narrow point of law and despite a very clear signal from the Supreme Court that there were another more realistic routes to make a challenge on behalf of bank customers, it has declined to do so."
Martin Lewis of Moneysavingexpert.com said: "This is a flaccid document and a complete waste of a chance to improve things for consumers.
"After three years all it's managed to do is set up yet another enquiry into best practice and told us it will monitor the banks for another two years, then maybe take action," he added.

orc_2

Shame on you OFT.:mad::mad::mad::mad::mad::mad::mad:

ILW

The money could have been better spent running a series of press and TV adverts with the message that "money is a serious matter" and people need to take responsibility for their dealings with financial organisations. It astounds me the amount of posts on this forum with quotes such as "I didn't read the small print, but who does?"

WestonDave

Did anyone really think that we'd have a situation where the Government almost bankrupts itself bailing the banks out, only for another department to turn around to the banks and tell them to start giving money away or closing down revenue streams so that the capital weaknesses in their balance sheets return?

The number of people looking to reclaim bank charges are relatively small compared to the whole population and rightly or wrongly many people see reclaimers as people without a valid complaint. So there are no votes in this by beating up on the banks - unpopular as they are.

So with a lack of economic motive to force change and no populist vote winning motive, its no surprise that any serious action on this has been put off until 2012 - coincidentally the same time the Government seems to think the economy will be strong enough to start taking some medicine in the form of spending cuts - presumably it thinks the banks might be strong enough then as well.

Those in real hardship still have the hardship routes, or will get their debts written off in bankruptcy. It makes no sense to "waste" money by helping those outside those groups who don't "really" need it by having a blanket attack on charges at this point.

Had we not had the recession then it might have been worth bashing the banks knowing that they could afford to take the pain and picking up the few votes that would come from taking that action - as it is, the vote gain isn't worth the economic cost. Government is often not about doing what is right, but what is right now - arguably in the majority interest its doing what is right now!

orc_2

We still have the court route as our hope.