How will reclaiming bank charges impact banking discussion

Newgirl_2

Newgirl wrote:

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

This post having been moved to this thread from another, please feel free to disregard my question - I can see that it has already been discussed more eloquently that I anticipated!!! :beer:

I originally asked my question within the section about reclaiming bank charges, unaware that this debate was ongoing. I too am fascinated by the opposing points of view and somewhat concerned that, amongst the posts about reclaiming, the question of a balance has not been raised.

I can see that if I had a debt of which 50% was unlawful charges which had caused me a problem in the first place, then I may wish to reclaim them; that isn't to say that I would wish any other bank account holder to stand the cost on my behalf. Not all people with debt problems feel the world owes them anything :rolleyes: some of us wish to sort it out for ourselves.

Newgirl

meoldmucker

I have views about this, personally I hate banks and my top brain thought is that they deserve everything they get, however my hatred towards banks is my own fault because it isnt rocket science to realise that once you fall into their category of a "bad customer" and you get that lower than low credit rating, they aren't going to help you one inch. I wish people would realise this and ditch them sooner rather than later and save themselves the charges in the first place.

2nd view - I am in business which is "cash Rich", in my first 2 years trading I paid the bank nearly 6000.00 in standard business charges, none of which were related to bad debt. So they are making their money still, anybody that is receiving free current acount banking now in my view is already spending my money, and why should I have to pay so much just because my turnover is high, it doesn't make me richer than a guy on an annual PAYE salary.

3rd view - This charge reclaiming is a trend, it'll pass and sooner or later it will become a thing of the past, i disagree somewhat that banks will take from non-claiments as its not like it will bankrupt banks, it will just affect their annual pre-tax profits which at a few billion pounds is probably less than one thinks. Lets face it, it happens in industry all the time, samonela, foot and mouth, BSE, bird flu......... then next year everyone buys polish turkey again.

4th view - all banks are hated, so why doesn't one stand up admit that they have overcharged and offer all their customers compensation, surely this will stand them in good stead for future developments.

5th view - bring back honest cash !!!

6th view - on becoming so frustrated with my business start up problems due to high personal debt, i eventually discovered that those lovely people that work in the high street banks are actually nothing more than shop assistants. If you ask them a question that isnt obvious, they will go out the back and find a telephone number to ring, i found those numbers myself and saved loads of time and hassle, high street banks are on their way out and this will save the bank a fortune, we have no idea how banks will operate in 10 years time, so i dont think they will need to penalise good customers........ whilst we are on the subject, its not the "shop assistants" fault, they are just human like us.......

sorry to rabbit on, each to their own, thanks for listening...

MOM

meoldmucker

adam_NI wrote:

i would disagree that you've saved me any money on this front!
i've had a bank account with halifax since i was 17, this includes my crazy student years, and i have never been charged! now thanks to what i believe the incorrect 'claiming back of charges', i will be at loss when surely all banks follow suit to First Direct and will introduce a monthly fee!
its just typical of British economics, you work hard and seem to be worst off! i would believe a visit to the cinema is a rip-off, but i dont claim the cost back because i think it was unfair!

the bottom line is this "dont spend beyond your means!". you shouldnt expect the bank to run your account for you, you avail of a free banking service and facilities, the bank is not a charity, therefore if you spend what isnt yours you should be charged!!
there are 1000's of people who pay no attention to their balance, and because of essentially nothing other than lazyness, they continue to receive charges! i certainly agree charges are high, but surely someone else but me can see if you were charged a few times, you'd catch yourself on, manage your money better, rather than continue to ignore the problem!

i would love to hear anyone's comments on this, everyone is entitled to their opinions on any matter! but i dont look forward to my monthly banking charge thanks to all you lazy people!!1

OK - thanks for the invitiaion, my comments are, well done for being so squeeky clean, i am sure that the banks are happy to offer you free banking after all, up until now they have made more than enough from me to cover their costs, but why be on their side?, you are of no importance to them, they would rather have 10 of me than 1 of you............ I remember being in your situation many moons ago, but unfortunately my bubble burst and the banks were the first to be on my back. I hope and wish for your luck to continue :beer:

MOM

meoldmucker

SonnyCash wrote:

I really love this thread - there seems a clear division of opinion.

TBH I can't for the life of me understand why somebody would endorse the banks charging excessively high fees.

The arguments seems that "if they don't charge these high fees then they will get this money from monthly fees."

One point does not equate to the other. The proper response should be that "as the banks presently charge an excessive amount they should now change this and charge an amount that does not penalise me or makes a profit from me".

Of course banks have a right to charge anybody for going over their agreed limit or asking for a charge for a standing order or a cheque not being honoured - but this should be to cover their actual costs etc. What we are asking the banks to do is to explain the breakdown of the charge as they are not allowed to penalise you or make profit out of a charge. IN short the charge should represent the actual cost to the bank.

In all the successful claims for charges - the banks have NEVER offered to give a breakdown of the charge ... NEVER. Does that not seem strange????

It is for ths reason alone that they would settle out of court then have to explain the charges.

If banks now want to increase their profit streams from monthly fees as they are losing out on profits from bank charges- then that is more telling about the bank not about the people who have demanded an explanation to the breakdown of their charges.

Does anybody have any proof that banks will introduce monthly management charges? if so, would they have done anyway and will they use this reclaiming from bad creditors as an excuse? also surely if one bank stays free, they will get all the customers opening new accounts, so why would they risk the competition? its worth remembering also that its not the consumer who made up bank charge reclaiming, it was made illegal by the financial onbudsmun, so what will he say about monthly account handling charges, how much can they legally introduce as a "fee" when it used to be a free service? - i wouldnt be over worried, banks are a business, and the last thing they will do is introduce something that is going to potentially lose them more customers....

meoldmucker

dexters_mum wrote:

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!

I think we would have seen more fees introduced anyway and that the bank will use this reclaiming trend as an excuse, lets face it, they dont make any money from customers who run their accounts properly anyway do they?

meoldmucker

Ive got a great plan.............. after reading all these reviews on how worried people are that their free banking will come to an end because of all us scum reclaiming there "illegal" charges, why doesn't an entreprenur introduce a bank called "The National Squeaky Clean Bank of Britain", (NSCB) then all of those people who have never had a charge can move to them and receive free banking forever........................ oh....... hang on a minute, surely the bank would then run at a loss, what about property costs and staffing, computers, admin................... thats OK, they could wait until some of their squeaky clean customers accidently bounce a cheque or go £1.00 overdrawn and charge them a small fortune, but hang on, then they would run the risk of becoming like a normal high street bank that would have to use the then "not so squeeky clean" people to fund the loses incurred from entertaining the squeeky clean people, but i guess that would be ok because once the not so squeaky clean people get charged double every month because they are still paying for last months charges then there would be more than enough money !!!!!!! NSCB would make a fortune until they run into problems with the financial onbudsman, oh dear, no one will like them, their only friends will be the squeeky clean people that make them no money............ so what they could do then................ is start charging the squeeky clean people a monthly fee which they would have done anyway and blame the not so squeaky clean people and once they have passed the blame, its no longer their fault......... hooray !!

not bad eh? im going to get my business plan together right now and forward it to an indian call centre in the middle of nowhere (if its open) :eek:

franny

I have just read a small article in the London Lite detailing how banks are starting to fight back against the "biggets consumer backlash in history".

It went on to say how banks are now starting to close accounts when customers start to enquire over their bank charges. The Financial Ombudsman is investigating and an MP (name beats me) has delared this action as "deplorable".

The article detailed the case of a Youth club that enquired after charges of £300 odd and was given 30 days to move accounts.

This is nothing that we didn't already know but HSBC were named as the worst (my bank) and also names A&L and Natwest. I think this makes it all the more important that we open parachute accounts just in case. There are thousands of posts on here helping with this process. I personally opened with A&L after claiming from HSBC.

It seems to me that the banks have had enough and are trying to reassert their authority by mucking the consumer about again but they are entitled to and we must remember this.

Still - the charges are illegal and lets not let this stop us from challenging them.

Zeusie

Al_Mac wrote:

Yep been done before

Me, I think it's unfair that I may have to pay to run my account, I have a large credit balance, or can have. So I should be a good customer, please don't charge me.

I do think charges have been to high, but I also some people are just taking the p when re-claiming.

Personally, I find it appalling that some poeple are clearly very happy to have their banking services subsidised by the application of unlawful penalties on other customers.

Maybe, rather complaining about the possibility of having to pay for such services in the future, they should be thanking those who subisidised their free banking for years.

Bunch of ingrates.

smiler84089

Hi Rex,
Its not about the T&Cs of a contract we sign up to, its all about whether those charges are proportionate and fair. In the banks case, IMHO, charging £35 to send a letter and make an adjustment on a computer (which would take miliseconds for a computer) hardly reflects the cost in reality.

We all need to watch our balances and certainly live within our means (i was very bad at this and was charged excessively) and if the banks were to charge, say, £2.50 every time i went over, etc then i would not contest and agree totally! It has been ruled by the OFT that creduit cards should charge £12 so why shouldnt the banks follow suit? Its only a matter of time.

smiler84089

nicky1142 wrote:

i agree with adam its just pure laziness stop blaiming the banks for your failures to manage your account

Nicky,
as mentioned before, its not the charge for mal-operation of your account, rather the excessive amount you are charged. If Barclays can make £1bn in profit why should they charge such a large amount?