Free banking 'will be axed'

grex9101

davidjwest wrote:

I'm wondering if the FSA will rule against such charging or if the government will set up it's own bank without charges for those who can't afford them.

I'm not sure the government would be able to do that even if they wanted to...

davidjwest

dixie_dean wrote:

David, just 1 point. Your argument against me saying they are greedy,was, to paraphrase, they want to make more profit than last year. I must be mssing something.

I'm not saying they're not greedy, just that this is how businesses behave, especially those with shareholders.

Nothing will change that, but if customers start to look for alternatives and valid alternatives are available, then perhaps the status quo might be broken.

oldwiring

In the days whn it was more unusual to have a bank account and there were fees with offsets for balances held. Accounts were opedned at the request of employers, often on favourable terms. I would reckon that a number of those accounts would not have been opened but for the relationship existing between the bank and its customer, the employer. With the fear that cavalier lending practices coupled to the potential for interest rates to rise uppermost in financial minds, I would not be surprised to see more attention paid to account quality, so that those without connections as mentioned above will find both fees and atricter conditions imposed on them. I will also put my neck out and forecast that some of the entrants into banking provision will be taken over and therefore the choice of going to another bank, because they are trying to gain an increased ciustomer base will be diminished. Over a period the bank liking to say yes will be the bank that will say no. Those who have not behaved will find a monthly fee the least of their problems.

BTW I think the historical fact of the surge in profts is not what the banks will look at; it is the risk of bad and doubtful debts and increses in costs that they see in the future that determines their decisions.

dchurch24

grex9101 wrote:

I'm not sure the government would be able to do that even if they wanted to...

...but we did used to have the Girobank.

Sadly though, this govt. is in the bank's pockets - if and when we ever get a govt. that actually has some balls we might see a return to a fairer consumer society.

I also detest the way that they claim that in the EU and US people have to pay for their accounts. Not entirely true. I have a current account in France - I do not get charged, and there are no penalties. Yes, there are banks in France that will charge a fee - there are others that do not. You probably get 'extras' with the ones that do - like the Barclay 'premium' account etc...

Also, in Holland there is a fee of roughly £1.30 per month to pay out up to 15 DD's. Fair enough. What's the betting it'll be over 10 times that here?

Someone (i.e. the reason we have a government), needs to step in and stop the British public being fleeced at every turn. Why did it take a public demonstration and the starting of the CAG site to actually get anything done?

I think a campaign is in order to get the laws regarding the setting up of a credit union relaxed a little, allowing consumers to have a choice of not using banks once again.

KTF

Would they charge these even on the 'basic' accounts? I cant imagine that would go down too well.

oldwiring

dchurch24 wrote:

.....I think a campaign is in order to get the laws regarding the setting up of a credit union relaxed a little, allowing consumers to have a choice of not using banks once again.

I'd support that, but a CU will not be a bank for the norma; day to day transactions and will not be able to arrange mortgages. Banks will still be a necessity.

dchurch24

but even before that, many employers had written into their conditions of employment that you HAD to have a valid account to be able to receive wages.

It would have been a breach, if the section regarding the forcing of commercial goods was there then, which it probably wasn't as it is a very recent amendment.

giggs11

what will happen to those people on benefits who were forced into opening a bank account to have their money paid into because the government decided to do away with giros and pension books??? will the government pay their banking fees for them???? we lost many post offices because of that and for what, so the banks can get bigger profits???

dchurch24

yep - nail, head.

ricflairandy

This country is a bloody joke.

Shell announce record profits of x billion, yet keep upping the prices.

British gaz announce record profits of x billion, yet keep upping the prices

now the banks after announcing record x billion proffits are deciding to add charges.

Its a bloody joke, and i for one cant wait untill i get a chance to leave this god dammn country.