How will reclaiming bank charges impact banking discussion

Nathan_Spleen

alexjohnson wrote: »

I don't preach that they should unless to use your phrase that they also want their cake and eat it by bleating about charges, and it's a hypothetical question as they wouldn't.

Of course it's a hypothetical question. All questions beggining with 'if' are hypothetical. And the reason you won't answer it is becuase it will reveal the flaw in your argument. You criticise people for having to pay these charges but if they avoided them, as you have made clear you think they should, you'd have to pay for your own banking yourself and that would be so unfair wouldn't it?

Edinburghlass_2

PLEASE DONT DELETE MY POST JUST BECAUSE YOU DONT LIKE MY OPINION!

I have no problem with your opinion but I have a problem with your language so please curtail it if you want your posts to remain, thank you.

PROLIANT

Edinburghlass wrote: »

PLEASE DONT DELETE MY POST JUST BECAUSE YOU DONT LIKE MY OPINION!

I have no problem with your opinion but I have a problem with your language so please curtail it if you want your posts to remain, thank you.

Language? There was no abusive or offensive language in my post, clean your glasses please and read it properly.

Edinburghlass_2

I read it, twice, thank you and it was offensive if you have a problem with this then please report it to abuse @ moneysavingexpert.com

PROLIANT

Edinburghlass wrote: »

I read it, twice, thank you and it was offensive if you have a problem with this then please report it to abuse @ moneysavingexpert.com

Are you blind? There is no abusive text in the post, what is your problem?

PROLIANT

Please don’t levy your forum admin rights to delete a post because you don’t agree with my opinion, you are abusing your position here and it is not right, look around the forums and you will find many more "abusive" postings for your reading, if you would kindly PM me and explain what I have posted that is so offensive and/or abusive then I will understand what you are saying rather than me guessing and will duly apologies.

IvanOpinion

Nathan_Spleen wrote: »

Of course it's a hypothetical question. All questions beggining with 'if' are hypothetical. And the reason you won't answer it is becuase it will reveal the flaw in your argument. You criticise people for having to pay these charges but if they avoided them, as you have made clear you think they should, you'd have to pay for your own banking yourself and that would be so unfair wouldn't it?

We are talking of two different situations here. On one hand we KNOW that some banks are moving from one charging structure to another (i.e. avoidable optional charging to unavoidable mandatory charging) .. in your scenario you can only guess what they might do.

If the irresponsible became more responsible then they would only be spending money they have earned thereby running accounts with credit balances. Despite the myths banks can and do make money on accounts being run responsibly in credit ... I personally think (and like yourself I am only hypothesising here) they would control this using poor interest rates on current accounts (similar to what they do now).

Ivan

IvanOpinion

Can I also put forward another argument I heard the other day. I have absolutely no evidence or anything to base this on but it is a slant that somebody else used. When they were talking to me they mentioned several percentages which I challenged by asking for additional information .. they could not back it up therefore I will not repeat the numbers .. just the 'argument'.

Their theory goes along the lines that a significant and disproportionate amount of call centre time is being utilised on servicing the accounts of those incapable of maintaining a budget. Therefore by getting rid of that burden the call centre costs decrease significantly which increases the benefit. Interesting thought, and one I will try to get some proper stats on (although I am not hopeful).

This actually ties in with other industries I have experience in were it can be determined that basically the call centres spend 90% of their time servicing 10% of the customer base (or 85/15 or 80/20 depending on how the data is being presented) ... in fact I have worked on a system that is specifically designed to get rid of "dead wood" customers by deliberately offering them poor service (and have even seen some of the unmanned, computer generated automated responses being presented on our very own vent board .. and have been so tempted to say 'can you not take a hint' ).

Ivan

Nathan_Spleen

IvanOpinion wrote: »

Despite the myths banks can and do make money on accounts being run responsibly in credit ...

The banks do make money on accounts in credit, as the QC for Nationwide confirmed during the test case:

''And what is the price? Well, my Lord, the price is broadly free for the credit customer, except of course we retain the difference between the interest rate that we give the credit customer and whatever commercial interest rate we are able to achieve on the money deposited, and that can be regarded as part of the price.''

Unlike yourself, I base my arguments on fact.

IvanOpinion

Nathan_Spleen wrote: »

The banks do make money on accounts in credit, as the QC for Nationwide confirmed during the test case:

''And what is the price? Well, my Lord, the price is broadly free for the credit customer, except of course we retain the difference between the interest rate that we give the credit customer and whatever commercial interest rate we are able to achieve on the money deposited, and that can be regarded as part of the price.''

Unlike yourself, I base my arguments on fact.

:rotfl: Oh my gawd, do you believe everything you are told or only that which suits your purposes. When did you first started hearing this line of argument .. it was AFTER those claiming back charges start propagating the myth that their charges were the reason why we have free banking ... as I predicted at the time, the banks have now turned that argument back on them and are using it for their own purposes .. if the public was gullible to believe the myth in the first place then the banks can exploit that gullibility to justify adding charges onto accounts being operated responsibly.

Your "fact" is little more than propaganda that you believe because it is what you want to believe. if you want facts there is no sense in talking to the board of Directors (or their mouthpiece), they are there to to make you believe what they want you to believe .. not all of us are that gullible or have a vested interest that drives what we believe.

I repeat, banks can make money on accounts being operated in credit .. not them all, since there are other factors, but it can and is being achieved.

Ivan