A brave new world of banking

Tootsie_Roll

I really do feel for everyone that is having to close their account down due to the charge, you really should not have to. If you're looking to blame someone balme dchurch et al - it is due to their actions this is happening as some of us on here have been predicting for some months now. It is unreasonable to expect banks to run unprofitable accounts AND lose even more money repaying the charges for people who have mismanaged their finances.

dchurch24

MPH80 wrote:

You don't actually read the posts you're responding to do you?

Errr.....yes. Apparently quoting a fact that they are NOT loss leaders (as I believe the poster actually meant, instead of 'lost'), is not replying to the following:

conveniently forget that bank accounts are lost leaders for banks

dchurch24

Tootsie_Roll wrote:

I really do feel for everyone that is having to close their account down due to the charge, you really should not have to. If you're looking to blame someone balme dchurch et al - it is due to their actions this is happening as some of us on here have been predicting for some months now. It is unreasonable to expect banks to run unprofitable accounts AND lose even more money repaying the charges for people who have mismanaged their finances.

Ha, ha. Brilliant.

I MADE the banks act outside of the law in the first place due to their greed, did I?

Or did I just catch them out?

Tootsie_Roll

dchurch24 wrote:

Ha, ha. Brilliant.

I MADE the banks act outside of the law in the first place due to their greed, did I?

Or did I just catch them out?

As usual completely missing the point.

MPH80

dchurch24 wrote:

Errr.....yes. Apparently quoting a fact that they are NOT loss leaders (as I believe the poster actually meant, instead of 'lost'), is not replying to the following:

And the point I keep trying to drive home to you is that they ARE loss leaders.

They get you in the door to sell you their interest baring products like loans, mortgages and credit cards, which as I've pointed out to you repeatedly are where this £1.05 a week comes from!!!!!!!

M.

dchurch24

Do you REALLY think that they are loss leaders?

Interest is paid at less than the rate of inflation, plus they have our money which they use to invest and play markets. It doesn't just sit there dormant until we decide to use it. Hence limits on withdrawals etc...

I assume that you saying that I have missed the point means that people having their charges returned are the reason the bank has attempted to charge people?

If so then I fear that it is you that is missing the point; if anyone really thinks that the banks returning a few quid (comparitevly) to people they have unlawfully taken it from is the cause of this, then you are sadly mistaken.

Do you not think that the bank would have done this in any case?

Of course, it blackmailing the OFT in anticipation of their investigation. They can paint the OFT as the big, bad govt. org. that *forced* us to try and get profit from somewhere else.

Gluttons for propaganda, you lot.

dchurch24

I remember all this from years ago when the motor insurers claimed that they don't make money from motor insurance policies.

Really, funny that. Last time I knew of a business that sold something it didn't make any money on, it stopped selling it.

MPH80

DChurch24 wrote:

Do you REALLY think that they are loss leaders?

Yep I do. I find it very very hard to believe that a bank can make enough money on my average £200 balance in my C/A to cover the costs of:

a) Managing the account
b) The disk space I'm taking up on the server and backup tapes
c) The cost of printing the cards
d) The cost of me having free ATM withdrawls
e) The cost of printing and mailing statements
f) Paying me 3% interest.

Even if they got 5% on my £200 - it'd only be £10 a year - and I'd bet I cost them more than that.

M.

MPH80

DChurch24 wrote:

Last time I knew of a business that sold something it didn't make any money on, it stopped selling it.

Then why do supermarkets continue to sell the basic every day items like cans of beans at a loss?

Oh wait - CROSS SELLING!

M.

Hereward

dchurch24 wrote:

Do you REALLY think that they are loss leaders?

Interest is paid at less than the rate of inflation, plus they have our money which they use to invest and play markets. It doesn't just sit there dormant until we decide to use it. Hence limits on withdrawals etc...

I'm not quite sure what the rate of inflation has to do with the argument about if current accounts are loss leaders or not: the rate of inflation demonstrates the change in prices of goods and services; interest rates are the cost of utilising capital. I think your argument would have been stronger if you had stated the BoE base rate instead.

Withdrawals limits are set to ensure that the banks has enough money at any particular branch to pay withdrawers, not to enable the account providers with the opportunity to play the financial markets. How would you feel if you went to withdraw £100, only to discover that the previous person had emptied the branch's safe? All banks and building societies must hold a significant portion of their deposits as cash to enable savers to access their money.