How will reclaiming bank charges impact banking discussion

Rex_Mundi

keith_har wrote:

HOWEVER if banks can prove that them charging 28quid to tell you they are overdrawn is an amicable figure to charge then dont they have the right to claim back there money???
As a result all those people who have claimed thousands of pounds from banks could end up returning there cash, forcing them dramitically into debt.

That could never happen. 99.9% of claims are being settled out of court, either once court action starts, or before. When the banks are offering settlement, they are all offering the settlement as a gesture of goodwill. They are all saying this is nothing to do with the level of charges.

Even if they could prove the charge costs £28, they could not take you to court for the return of a goodwill gesture they've made to you.

ManAtHome

Surprised they haven't gone with the OFT decision on credit card charges (around £12 I believe). As for the "less than a fiver" claims, this probably wouldn't cover IT development costs even if it would cover "running costs". Would love to see some estimates from the TV "experts" (mainly academics?) about other stuff - could be good for a laugh.

I don't work in the financial sector by the way, but I know that their IT costs vastly outstrip other business sectors.

Rex_Mundi

Just because someone cannot take care of their finances doesn't mean they shouldn't have rights under certain laws. These are two completely seperate issues.

I also have never been charged a single bank charge. It is sad to see some people constantly run into problems (and maybe they need to rethink their spending habits), but it still doesn't make it right for the bank to keep charging these unlawful amounts, and people have every right to reclaim them.

nickmack

Tootsie_Roll wrote:

Exactly the point that has been made over and over again - some people are too stupid to learn from past mistakes and didn't deserve the refund in the first place - but hey let's all jump on the bandwagon and balls it up for those of us that take more care with their finances!!

Disgusting.

I agree that one of the main outcomes of this process, should hopefully be to stop people incurring further charges, if anything as a result of being better off financially.

Most people reclaiming charges are not 'stupid', as I think has been explained to you before. Many have financial difficulties, not necessary through mis-management. Even if people deliberately incurred charges, they are still unlawful, so it doesn't matter what you or anyone else thinks about such individuals, they are still entitled to a refund.

albreda

I was told yesterday that Banks are going to introduce account fees fot all accounts because of the people claiming back all their bank charges. Is this true? Are there any official sites to confirm or disclaim this?

dexters_mum_2

It seems they are, both First Direct and starting to charge £10 for their accounts, although with FD if you have 2 accounts, you're exempt. Cirtibank offer a packaged account now and a normal current account but facilities differ on them.

I think we will be seeing more and more fees introduced because of the recaliming charges, they've found that they've got to make money somewhere and this is what seems to be the answer for them, regardless of the consumers interest!

albreda

Does this mean that people who have never gone overdrawn or have abided by the bank's rules are now going to suffer as a result of chancers and those who have mis-managed their bank accounts? What can be done?

Bob_Roberts

Well done to Martin.

Looks like lots of us will soon have to start paying Bank Charges when the Banks get rid of "free Banking" because they will be looking to recoup all the money you're saving people who manage their accounts badly.

PS when I say "Free Banking" that isn't exactly true. Banks use my credit balances all the time to lend to those who abuse the system - and pay me nothing - I've long accepted thats a fair exchange for not charging me for routine account operation. Reality now - I'll be paying twice - and you'll all save.

PS, Martin, you might remember the name - I'm the one who criticised you for the Council Tax isse where majority who save are in top bands, and rest of us will pay refunds they get through higher taxes.

nickmack

albreda wrote:

Does this mean that people who have never gone overdrawn or have abided by the bank's rules are now going to suffer as a result of chancers and those who have mis-managed their bank accounts? What can be done?

It seems you are suggesting that banks should make unlawful charges rather than charging a transparent account fee.

Maybe you're in a financial position where you don't incur charges. Unfortunately people who reclaiming are not in this situation and despite what you may think, many people do not deliberately mis-manage their accounts.

Like any business, the bank wants to make as big profit as they can. The fact is they've been boosting this through unlawful charges for years. Now they've been exposed and forced to repay, they're looking at ways to recoup this money.

Your concern is obviously with now having to pay an account fee. It has nothing to do with people breaking Terms and Conditions and everything to do with the unlawful amount being charged. If banks had not charged penalties all this time, account fees or similar would have been widespread years ago, so you should actually be thanking people who have 'mis-managed' their accounts

Newgirl_2

Not wishing to put the cat among the pigeons, thought I ask people's views about the proposals and suggestions that banks will charge fees to run current accounts... I have to wonder whether this was thought up before or after everyone started reclaiming bank charges

Having just opened new parachute accounts for running my DMP (and on the whole, being up to date with creditors at this point) I can't help but think that over my lifetime, I will pay more in account fees than I would be able to claim in bank charges.

I'm not saying whether I am for or against re claiming charges - I understand that they are unlawful -but banks will make their money somehow. I don't think the public are getting away with anything.

I can also see a backlash from people who have run their accounts well, being put out at having to fund other people's bank charges.

Sorry for the controversial question or if has been posted before... I am curious what people think.

Newgirl