What impact will the OFT have?

MSE_Martin

PLEASE READ MY INITIAL POST

Hi folks, there are a lot of worries above that seem to ignore the info in the first post.

The OFT decision doesn't make a blind jot of difference to your claim, it makes a difference to the banks likely attitude to giving you money. It is more likely to make you an offer, but that offer is probably only going to be for around half your cash.

This doesn't (in the main) impact your ability to go to court and push for it at all.

All this is explained in detail in my first post. Remember the 'do it now' is because its likely it will be 'easier to get all the cash without pushing so hard'. Yet if your claim isn't dealt with in time, you will probably a. Be made an offer, but B. Need to take the bank to court to get all your cash.

The reason for doing it now isn't "because you can't" in the future but because "it'll be more hassle to get ALL your money back in the future".

Please carefully read my first post. It's all set out there. And overall don't panic, there's no need.

Martin

bookworm1363

krisskross wrote:

I feel the OFT opinion will only start to have any effect after it has been made. thus I think charges levied until the date of the OFT report will be paid without much of a fight.

Incorrect. Some banks already fight back as far as they can, some give in relatively easily. The OFT report won't make a blind bit of difference to that.

The charges that are levied after the report then I do think the banks will take a much harder line, even going to the lengths of rewriting T&Cs, perhaps renaming the charges as service charges

They already have. Just about every bank has sent out new T&Cs, calling the penalty fees "request for informal overdraft", "service charge" etc... Thankfully, we already are prepared for that try. Furthermore, the courts are also very aware of this, so aware they call it "cloaking the penalty". If it looks like a dog, barks like a dog, bites like a dog.... :rolleyes:

The banks HAVE to come up with some method to deter people from helping themselves to the banks money. If they don't then they will be further accused of irresponsible lending (??) and encouraging debt.

I do hope when you say the banks' money, you mean the exceeded overdrafts and such like, and not the penalty charges, cos that's OUR money, not theirs!
If you do mean the way in which the banks let their customers go over the limit, then it is easy: 0 tolerance. If you have the money in your account (or authorised o/draft), then the transaction goes through. If you haven't, it doesn't. No charges, no irresponsible lending, no spiral of debt.

But I'll lay a bet that the banks will never do that. Because the fact is they want to be able to levy charges and higher interest and all it ensues.

krisskross

bookworm1363 wrote:

I
If you do mean the way in which the banks let their customers go over the limit, then it is easy: 0 tolerance. If you have the money in your account (or authorised o/draft), then the transaction goes through. If you haven't, it doesn't. No charges, no irresponsible lending, no spiral of debt.

.

Do you really think customers are going to go for this one? I honestly think it is the only way but I can already hear the cries about starving children because the debit card or cash point card is refused. This just will not work. A lot of people do not have money to fall back on if a payment is not made into their account for whatever reason. They are also normally the people who will not be given an overdraft.

nickmack

krisskross wrote: »

Do you really think customers are going to go for this one? I honestly think it is the only way but I can already hear the cries about starving children because the debit card or cash point card is refused. This just will not work. A lot of people do not have money to fall back on if a payment is not made into their account for whatever reason. They are also normally the people who will not be given an overdraft.

As bookworm said, customers probably won't get a chance to pass judgement over this scenario as it's unlikely to happen.

It's in the banks interest to allow people to exceed limits up to a certain point in order they can make money out of them.

In fact I'd go as far as saying banks strongly encourage as much debt as they think a customer can handle (and sometimes more) in order they can charge penalties and high interest rates.

Think how many times a week, you're bombarded with offers of loans and credit cards and you're told how easy it is. No application forms required, answer a few questions and sign here, it's nearly as easy as buying a packet of gum from your local shop.

People obviosuly need to take responsibility for their debt, but the financial institutions marketing power is immense and can be very persuasive for some people who are already in difficult situations.

adwozere

Is this OFT report going make any impact on claiming money back from credit cards.
The reason I'm asking is that after waiting 3 week for Barclaycard to send me my list of charges going back 6 years, they have just sent me 2 1/2 years worth, and said the rest are on microfilm, and because of this the Data Protection Act 1998 doesn't cover them in this situation, so I'm 'LIKELY TO GET THEM WITHIN THE NEXT 6 WEEKS OR SO'.
Do you think this is for real or are they dragging there feet.

nickmack

adwozere wrote: »

Is this OFT report going make any impact on claiming money back from credit cards.

The OFT completed their investigation into Credit Card charges a while ago, the latest review is being carried out for bank accounts.

richardvc

What I find distasteful is the OFT getting into bed with the banks and possibly compromising at £15 per charge. The banks will still make massive profits and the charges will still NOT be in proportion to the actual cost of approx £4.50.

Then the banks will quote the OFT back at us stating the actual cost is £15.

The OFT should be ordering the banks to reduce their charges and not compromising with them.

linzeloo

I received a letter from HSBC credit card services today after sending letter demanding charges back. It says;

'The OFT has recently published the findings from its enquiry into default charges on credit card. HSBC has carefully considered the OFT's publication and does not accept its findings. However, the OFT's investigation has led to a change in market practices and HSBC has therefore decided, for commerical reasons and in the interests of customers, to reduce its card default charges for the future. These changes do not affect charges that have been applied. Accordingly, I regret that we are not prepared to agree any refunds of default charges or provide any compensation payments. I hope I have been able to clarify HSBC's position on credit cards.'

What do you reckon? Should I take them to court still?

Edinburghlass_2

Yes..........

Chrysalis

MSE_Martin wrote: »

The reason Jamalfatty is while the credit card announcement was the OFT in a less high profile light. My sources tell me the bank charge opinion will be a compromise with the banks, and thus its quite possible we'll see automated reclaim systems set up; which didn't happen with credit card charges. And that if you're trying to go round that, the banks will push back with more force.

It's also worth remembering that the link between CC charges and Bank charges, meant that the banks fighting it in court court risk a ruling on Bank charges with a read across, yet now both are in the open changing the game.

Martin so you think customers will still be able to claim after the ruling? Do you expect their to be a ruling blocking account closures as well as the main thing stopping me claiming is no bank will offer me a debit card meaning I cant risk losing the one I have.