OFT makes 'putting it on hold' announcement

Rafter

Twinkly wrote: »

I saw all the study I needed in BBC1's Whistleblower program last week. 9p to bounce a cheque through an automated process. £1.50 - £2.00 if done manually. Tsk Tsk.

Hi Twinkly,

Yes - agree it should be lower than £12 but they are not totally unlawful.

It is right that those who do breach the conditions do bear some of the cost rather than them being shared amoung all customers.

Fact is though that other banking transaactions that are currently free cost a lot of money too. Paying in over the counter when there is a perfectly good automatic machine. Writing a cheque when you have a debit card or can use an online transfer.

The banks aren't going to go bust from charging lawful fees. They are going to get income from other areas, but competition and higher interest rates in the UK means that one of them at least will offer a free non-interest paying basic bank account which is still much better than most european and international accounts.

Agree with others. Doing nothing now is wrong. If the banks aren't going to defend themselves in court a government agency has to intervene and get the law clarified or at least introduce some fairness where none currently exists.

R.

paypal_2

Thanks for your lead, Martin.
I have an issue about hidden bank charges.
I have several regular Direct Debits and Standing Orders leaving my account electronically.
Each of these takes three working days to arrive at the recipients' accounts.
I am certain that three day's interest is lost by me and by the recipient-- in one instance the "recipient" is another of my accounts.
In this day of electronic communication I fail to see why the banks insist that it still takes three days to clear a payment-- they may have had an argument when banking was done by cheque.
If they argue that they wait the three days to check that the account has cleared funds then they are being illogical ,as they know immediately about an account's status by electronic means.
I feel that when I take cash from an ATM it leaves my bank well before the three day's clearance
I hope that the OFT investigates this means of banks making additional profit by using my money through the three days clearance method
It would be good to see other readers' views on this ttopic, but i don't know which thread to post this to, perhaps you could let me know? Thanks

paypal-- no relation

Edinburghlass_2

You'll find this and similar topics discussed on the Budgeting and Current Account Board.

http://forums.moneysavingexpert.com/forumdisplay.html?f=20

YorkshireBoy

Chrysalis wrote: »

well they did get somewhere with the credit cards now people are getting charged much lower fees.

People are now also paying higher interest rates on their debt, higher percentage rate uncapped BT fees each time they want to shift debt at the end of an intro period, and having credit limits (that people sometimes need to retain to shuffle debt around - for the Egg Anniversary offer for example) on 'dormant' accounts slashed.

From reading their statement, the OFT's thoughts are clear (to me at least)...

The banks can inflict far more damage to far more people than the credit card providers have done, so it's better to undertake an "in-depth study of retail bank pricing" before 'telling' the banks what they can and can't do.

rag-girl

paypal wrote: »

Thanks for your lead, Martin.
I have an issue about hidden bank charges.
I have several regular Direct Debits and Standing Orders leaving my account electronically.
Each of these takes three working days to arrive at the recipients' accounts.
I am certain that three day's interest is lost by me and by the recipient-- in one instance the "recipient" is another of my accounts.
In this day of electronic communication I fail to see why the banks insist that it still takes three days to clear a payment-- they may have had an argument when banking was done by cheque.
If they argue that they wait the three days to check that the account has cleared funds then they are being illogical ,as they know immediately about an account's status by electronic means.
I feel that when I take cash from an ATM it leaves my bank well before the three day's clearance
I hope that the OFT investigates this means of banks making additional profit by using my money through the three days clearance method
It would be good to see other readers' views on this ttopic, but i don't know which thread to post this to, perhaps you could let me know? Thanks

paypal-- no relation

Hi Ya,
this delay in transfering money to other accounts/recipients' accounts has also annoyed me, when you pay for your goods using your debit card, the funds are taken from your account before you leave the store, i bank with "Intelligent Finance", they have recently started a new service, your payments are made the same day, "But It Costs You", cant remember how much, but it was quite a few pounds, not just a couple of quid. the other thing i'd like to know, is where has this money gone whilst it's being transfered?


Les

sonskyn

paypal wrote: »

Thanks for your lead, Martin.
I have an issue about hidden bank charges.
I have several regular Direct Debits and Standing Orders leaving my account electronically.
Each of these takes three working days to arrive at the recipients' accounts.
I am certain that three day's interest is lost by me and by the recipient-- in one instance the "recipient" is another of my accounts.
In this day of electronic communication I fail to see why the banks insist that it still takes three days to clear a payment-- they may have had an argument when banking was done by cheque.
If they argue that they wait the three days to check that the account has cleared funds then they are being illogical ,as they know immediately about an account's status by electronic means.
I feel that when I take cash from an ATM it leaves my bank well before the three day's clearance
I hope that the OFT investigates this means of banks making additional profit by using my money through the three days clearance method
It would be good to see other readers' views on this ttopic, but i don't know which thread to post this to, perhaps you could let me know? Thanks

paypal-- no relation

I have to add to your question...:cool:

If I bank a cheque it takes 5 - 7 days to clear in my account, but if I give a cheque to somebody else and they bank it, it will clear the same day But the newest my bank told me a few days ago was when I banked some cheques and cash together. This did not show on my account until the evening. When I queried it with my bank in the afternoon, they said it was because I banked cash. Now, I did go into the bank and the teller did put the transaction on there system the while I was there. Why did it take about 6 hours to show on my account.

Just a few thoughts I wanted to share and see what other people think about it. :rolleyes:

SparciaM

In response to transfers and transactions, we're still running on a 1970s system where it takes 3 days to go between banks and companies. This is being updated at the end of November to bring in same day banking transfers, but there may be a small charge for this.

Also, cheque processing is still done via the 1970s system as well. The bank systems haven't been updated in years, but with the help of them all the BBA and the government they are updating for November 2007.

In response to the OFT ruling, I think they should do a full investigation, as people who never go overdrawn and can run their accounts accordingly would be penalised if charges were dropped, as we would have to pay for an account or using things. If people can't see sense in cancelling a DD before it's due to take them over their limit, then why should be who run their accounts and budget properly be penalised. Hopefully OFT will look into all this (like the BBC website showed) and that customers who have good accounts will continue to benefit from having good accounts.

golddigger_3

I was wondering about this too. I transferred £200 from my hubby's account (LLoyds)- it went out of his account the next day - it didn't show up in my account (HSBC) until 5 days later. Where did that money go for the 5 days? who had the interest?
Something is a bit remis here. (No weekends involved here)
We seem to have hijacked this thread lol

Twinkly

SparciaM wrote: »

If people can't see sense in cancelling a DD before it's due to take them over their limit, then why should be who run their accounts and budget properly be penalised.

Having sent a DD instruction to NTL who did not acknowledge it in any way shape or form and then attempted to access my account three months later incurring me charges I suppose I am one of those people who cannot budget correctly. I apologise in advance if the bank makes anyone who does budget pay for 'my' mistakes :rotfl:

I am teasing, dont get offended

esmerellda

News in Mirror and BBC sites today re Yorkshire Bank and the OFT Report

http://news.bbc.co.uk/1/hi/business/6507865.stm
http://www.mirror.co.uk/news/money/city/tm_headline=bank-on-more-rip%2Doff-misery--%26method=full%26objectid=18831171%26siteid=89520-name_page.html