The other side of the coin: The case for bank charges

inmypocketnottheirs

Let's just cut the cr&p and get back to basics.

Cease 'free' banking. There is no such thing, everything has a cost. Re-introduce a monthly charge, charge per cheque/debit/cash withdrawal/credit/statement/cheque book.

That's how it used to be up until the early 80's. Then the banks started making record profits.

It worked before.

MrSmartprice

I have had current accounts since 1971. I have never paid a monthly charge. I have binned 2 banks in the past because they tried to impose unfair charges on me, and another for incompetent service. I have been with my current bank for over 20 years, and have never been subjected to such unfair charges. If I go into the red I get charged interest, the most I have ever paid is 12p.

Banks make money with our money. Why should they need to charge for holding an account on top of that? If they impose a flat charge they will find, I believe, that customers will be more demanding, and complain at every opportunity. Any problem will have people asking for refunds. They are opening a can of worms.

digp

Call_Centre_Monkey wrote:

.........

Now, I know the argument is that they are 'unlawful'. Personally I don't think they are, but obviously that is a grey area that needs resolved.

1. which bank do you run / work for ? what's your interest in this subject area?
2. they are unlawful - no grey area. perhaps in the minds of the "*(&%*(& that run the banks there is a grey area but there isn't.
3. what's with the speech marks around 'unlawful'?

James

Call_Centre_Monkey wrote:

Now, credit cards. The OFT decided a few months ago £12 should be the upper limit on fees on credit cards. Many people argue this is a good thing, but I think it is a bad thing.

Now, just say the banks gain £X of revenue a year through fees etc prior to the decrease. Therefore when fees go down, revenue from them goes down, thus making credit cards less profitable for providers. Again at this stage people may argue the banks don't deserve to have this money anyway as it is more than the 'actual cost' to the bank.

?

The Credit Card Fee that is never mentioned is the fee that is levied on the retailer. This can vary from 1.3% up to 8% of the cost of the transaction. Several years back the average spend on a credit card was around the £54 pound mark - Not a bad mark up (between 50p - £4 per swipe) for the card industry - and all this is before one single penny being paid in interest by the cardholder.

jmfwilts

I actually thought high bank charges were a good thing. When I was younger it stopped me from going into the red because I knew that I would face a hefty pentalty.

bengal-stripe

inmypocketnottheirs wrote:

Cease 'free' banking. There is no such thing, everything has a cost. Re-introduce a monthly charge, charge per cheque/debit/cash withdrawal/credit/statement/cheque book.

Agreed.

But wave the charges for all those people who have behaved well in the previous month. If you go overdrawn (over your limit), have bounced DD or whatever, you pay (a lot) and if you have been good, you are let off the charges.

That would concentrate the minds of all those people who see it as their God-given right to mess up things.
(It might even give a boost to the pawn broking trade.)

bengal-stripe

digp wrote:

2. they are unlawful - no grey area. perhaps in the minds of the "*(&%*(& that run the banks there is a grey area but there isn't.
3. what's with the speech marks around 'unlawful'?

It has never been decided in a court, whether or not they are unlawful. At present they are ‘presumed’ or ‘alleged’ to be unlawful.
Hence the quotation marks.

Are penalty-clauses unlawful for Wembley Stadium? I believe most people (apart from Multiplex), believe they are a good thing.

Lizzy

QUOTE.[The thing is - and the thing that grates with me - is there is a VERY easy way to avoid bank charges:

1) Have your wages paid into the bank on day x
2) On day x - go to bank and withdraw all your wages in cash
3) Put cash under matress and pay all bills over the counter using cash.

Since you know how much the wages are - it's a simple matter to reduce the account balance to 0. And since it's all cash - no cash - no purchase!

Utilise this system and the *only* people who will incur charges are those who cannot be bothered to manage their finances. As far as I'm concerned - those people fall into the same category as those who don't look for the 3 for 2 offers in the supermarket and thus deserve to get penalised.

---

Well this this would be great in the ideal world.

I am self employed and payday does not exist, it comes as and when.
Yes the customers are supposed to pay by a certain day but they NEVER do. The difference is weeks not days. Most of us are the same, you get the bill for your new stairs which you said you would pay straight away, its probably three weeks before you even think about paying it.
Also the fixed amount of pay does not exist either, it can be lots a little or nothing.

Also what about the misfortunes of life ? sickness, redunancy and death of a loved one. I am sure you are gong to say insurance. Death insurance is cheap but illness and accident is £200 a month because I just looked into it.

Sorry if this seems that I am having a go, I'm not. It's just that life is not black and white, there are many colours inbetween.

Lizzy

Call_Centre_Monkey

But credit cards/bank accounts are black and white, they aren't there to suit your lifestyle. You need to learn to manage your money (ie build in allowances for people paying you later in the month etc) if you dont want to be stuck with charges, and make allowances for the misfortunues in life.

payless

I don't pay bank charges ....

£127 in day sounds heavy.. although if I was at risk of that I would be more careful.

My bank current statement says
We charge this when you go overdrawn and don’t have an overdraft facility, or if you go overdrawn above an agreed overdraft. We will charge this fee again on each day we make a payment for you that increases your overdraft.


£30 a day (maximum of 3 charges in any one monthly charging period - maximum of £90)

We understand that everyone can make mistakes from time to time. This is why we won’t charge you fees the first day you go overdrawn without agreement, as long as you haven't done so in the previous 12 months

--
perhaps you should change banks

--