Just a quick question

georgiasmum

Sorry if this has already been raised but I couldn't find it. Is true/likely that in the event of so many of us reclaiming our bank charges the banks will be 'forced' to end free banking and introduce fees for all accounts like in the USA and Australia? I read somewhere that this site and https://www.thisismoney.co.uk were cited as the main 'advertisers' of this loophole (their lang not mine) and that as consumers we will pay for taking the advice.....

humfer

No one really knows but just have a look at the thread 'First Direct to charge all customers £10' for the interest this created. No one really knows if they were definately planning to do it, but they have apparently cancelled plans to charge customers £10 a month now. I suppose it will be something driven by market forces - it will take a brave CEO of one of the big 5 banks to be the first to announce charges. To be honest think they will put their thoughts elsewhere to come up with more penalty ideas/etc to bring in the lost cash

masonic

If banks can't make their money one way, they will make it another... Whether they introduce fees or find some other way to charge customers is a matter of pure speculation.

I'm sure some of the people who have been charged hundreds of pounds in bank charges would rather have those charges refunded even if it did mean the rest of us ended up ultimately footing the bill for those refunds. Who can blame them?

humfer

humfer wrote:

No one really knows but just have a look at the thread 'First Direct to charge all customers £10' for the interest this created. No one really knows if they were definately planning to do it, but they have apparently cancelled plans to charge customers £10 a month now. I suppose it will be something driven by market forces - it will take a brave CEO of one of the big 5 banks to be the first to announce charges. To be honest think they will put their thoughts elsewhere to come up with more penalty ideas/etc to bring in the lost cash

The thread I'm talking about is just a few down from this one, but here's the link just incase

http://forums.moneysavingexpert.com/showthread.html?t=226699

Gordon_the_Moron

They are trying to get people to stop reclaiming charges, they say that losses from these charges means they will have to do it, thats just bull!!!! they may try it to make money with that as an excuse but banks like A&L will always offer free services to try and poach customers from the big banks... and if the big banks charge and others don't it will work... only they will go very very fast. They may just change their minds when the exodus of customers happens.

oldwiring

Gordon_the_Moron wrote:

They are trying to get people to stop reclaiming charges, they say that losses from these charges means they will have to do it, thats just bull!!!! they may try it to make money with that as an excuse but banks like A&L will always offer free services to try and poach customers from the big banks... and if the big banks charge and others don't it will work... only they will go very very fast. They may just change their minds when the exodus of customers happens.

You assume that the banks will break ranks if charging is introduced and free banking will stay? There may be varied ways of levying the charges and rates, but what if another assumption is made, namely that all more or less keep together so there is no escape? OTOH the banks could continue with free banking but be more willing to close badly conducted accounts. Some will find a rapidly diminishing supply of banks willing to conduct business with them. Of course the worse sufferers will be those who have had a few quid returned or those who have been good hitherto but fall foul of the new regime. Just an assumption though like yours.

As to th smaller ones poaching; that's OK unless overload occurs.