charges are back

RCA_2

with penalty charges being reduced it would seem card companies are finding more inventive ways to get profits back. these will be released to the public very soon so i won't comment on them. but they no doubt will be causing a lot of controversy, 12 quid if don't change your address with the card company amongst many other gems. right or wrong? discuss.

Astaroth

Not exactly news given the big 5 banks all commented on the end of free banking at their interim results presentations in July/ August last year.

I think people have had it "too good" for the last few years with no fees, exceptionally low interest (if any) etc and still people complained... the back lash will be interesting. People saying they will boycott banks/ cut up their cards etc will be amusing especially as 90% of them will still be using their cards in 12 months time.

RCA_2

its come as a suprise to staff that these changes will be in within a few weeks and customers will be informed very soon. and i also have it on good authority that another bank is bringing back annual charges in the next few weeks for a small group of card holders (not nessesarily the one i work for before anyone jumps to any conclusions- I know people in other banks) to be honest i would much rather the penalty charges went back up then everyone have to pay for it. i'm sure if everyone who has a credit card was asked they would rather the fees for late payments or overlimit etc were high than everyone have to pay the new fees.

---lee---

RCA wrote:

ii'm sure if everyone who has a credit card was asked they would rather the fees for late payments or overlimit etc were high than everyone have to pay the new fees.

I disagree. Some of the people who are charged these ridiculously high fees are those who can least afford it – for example someone who has just lost their job.

The card providers make a lot of money out of the merchants for providing card services. That's a nice little earner for them. Them of course there's the whopping interest that they charge anyone with an outstanding balance.

The only reason the card companies are coming up with these new schemes is because they know that their charges are disproportionate and punitive – therefore they would never want to defend them in court in the future - as with bank fees.

As for annual fees, I would close any card that does not make or save me money if an annual fee were applied.

thesaint

I believe that there will always be fee's free banking available, nothing i've heard otherwise changes my mind, lots of scare stories going around, but i'm not worried.

The people least able top afford fee's will be restricted, but that's the way it's always been. Welcome to capitalism.

RCA_2

---lee--- wrote:

I disagree. Some of the people who are charged these ridiculously high fees are those who can least afford it – for example someone who has just lost their job.

The card providers make a lot of money out of the merchants for providing card services. That's a nice little earner for them. Them of course there's the whopping interest that they charge anyone with an outstanding balance.

The only reason the card companies are coming up with these new schemes is because they know that their charges are disproportionate and punitive – therefore they would never want to defend them in court in the future - as with bank fees.

As for annual fees, I would close any card that does not make or save me money if an annual fee were applied.

I understand what you're saying but people should take responsibility for their own finances, whilst i understand that there are in a few cases circumstances which are unforseeable and where people have no control for example, job loss. but in a majority of cases people incur charges due to their own preventable errors. I've seen a list of all the new charges and I feel that they are more unfair than the penalty charges as i'm sure many people will agree once they are made public. and as for the annual fees, now a second very large card company has followed in the footsteps of lloyds and i expect it will be only a matter of time before everyone else gets in on the act, seems from what i've been told that these new annual charges will be tested on a select group of customers and unless people complain then they will be rolled out and everyone will pay.

moonrakerz

RCA wrote:

to be honest i would much rather the penalty charges went back up then everyone have to pay for it. i'm sure if everyone who has a credit card was asked they would rather the fees for late payments or overlimit etc were high than everyone have to pay the new fees.

You are missing the point; "penalty charges" are unlawful. Whether they are a penny or £30 makes no difference - they are still unlawful !
If the law said that these charges were ok, no problem. I obey the laws of the land (some of which I may not agree with) why shouldn't the banks ?

AMILLIONDOLLARS

Will any of the charges apply to life of balance cards?

AMD

RCA_2

AMILLIONDOLLARS wrote:

Will any of the charges apply to life of balance cards?

AMD

at the moment the annual fees are going to be voluntary, you pay the fee or you loose certain benefits. only a small group of people will be used as a test group (similar to the lloyds sample group).

Also, i'm well aware that penalty charges are unlawful but that doesn't mean I nessesarily agree with how the law can dictate to people what they can and can't have as their own pre- agreed contractual provisions. i'm all for placing the burden back on the minority who have done something wrong than the majority who are not at fault, however it may have to be done within the law, if some people have to have higher interest rates for making late payments then so be it.

trets77

The banks are still smarting from the punch in the nose they have got over penalty charges.

I bet they never thought it would catch up with them? well screw them now it has.... and i am glad they are squealling like the stuck pigs they are. HA HA HA

and now they are threating all sorts.

I cancelled my banks (Lloyds tsb) crappy credit cards a long time ago. and in the same week they are to introduce charges for inactivity on credit cards and even worse charges for paying your Balance off in full every month !!! ( i,e we will make money out of you by fair means or foul). i get some pre approved platinum credit card offers in the post and a wooing phone call offering the same. what a nerve !!! .

i told them where they could shove their crappy card and i will do the same for any other sneaky add on charged on bank and credit cards they try to sting me with.
i have no worries that i will be able to pick and choose my products for my benifit not thiers due to availabilty through competition in the market.