MSE News: Minister warns banks of overdraft charges legislation

chipbeck

glider3560 wrote: »

If banks can't charge overdraft fees, they'll find another way of making money. That is why the bank exists - not to provide joe public with banking services, but to make a profit. In the end, we'll all end up paying for services which we may currently receive for free.

Low income, being made redundant, etc is not a good enough reason for going into an unauthorised overdraft. My parents were brought up in families earning minimum wage back in the 60s. They couldn't just steal the bank's money when they felt like it, but they got by. Perhaps by not having a TV or phone, or by renting such goods as opposed to buying them. Nowadays having a TV or mobile phone or Sky subscription seems to have become a right, rather than a privilege for those who could afford them.

Before someone brings up the "we've bailed out the banks so we want something back for free" argument, this won't wash with me because in case anyone hasn't noticed, we bought shares in the bank - we didn't just hand over huge wads of cash. When the banks make a profit, the government will receive their share of this. The government will also be able to sell the shares, which should recover some of the money spent.

Good financial responsibility is all most people need to avoid charges. Question yourself before you stick your card in the PIN terminal: Do I really need this item? Can I get it cheaper? Do I have enough money in my account? Do I have any bills due in the next few days?

My mum and dad used to live in a hole in the middle of the road. We used to eat Grit for tea.

davidgmmafan

All very impressive stuff, I'd agree that right now people suck, its true. We couldn't manage WWII now, people would be too worried about stress, dpression etc. I would also agree with anyone who said living standard have changed dramatically over whatever period of time you care to look at in the last 100 years, and people are much better off now than ever before. However I just don't get this...

"They couldn't just steal the bank's money when they felt like it, but they got by."

What advantage do you imagine there is from having items returned unpaid? Or having them paid? You get charge either way, so how exactly does ANYONE EVER benefit from this?

Also the banks DO authorize the payments because there's money in it, lots and lots of money.

For my next trick I'm off to teach someone to suck eggs. Enjoy.