Don't let the Banks rip you off

AndyR_3

 Having taken the time & trouble to withdraw cash from a Buiding Society account and phsically pay it in first thing Monday I didn't think it unreasonable to request the charge be credited (I would for a long-standing, valued customer).

I work in a bank, and sometimes get asked by customers to refund charges to their accounts. I have full authority to refund any charges when I think it is appropriate to do so. One of the things I consider is what products the customer has with us. A valued customer is not one who simply uses us as a clearing bank, and keeps his savings at the building society. A valued customer would keep his savings with us.

I've refunded charges in the past when people have had funds in a savings account with us - I have no problem doing this (I usually suggest an automatic transfer to avoid future problems). Generally, if someone is only using us as a clearing bank, I would not refund charges unless the bank had made an error.

sergeant121

I work in a bank, and sometimes get asked by customers to refund charges to their accounts. I have full authority to refund any charges when I think it is appropriate to do so. One of the things I consider is what products the customer has with us. A valued customer is not one who simply uses us as a clearing bank, and keeps his savings at the building society. A valued customer would keep his savings with us.

I've refunded charges in the past when people have had funds in a savings account with us - I have no problem doing this (I usually suggest an automatic transfer to avoid future problems). Generally, if someone is only using us as a clearing bank, I would not refund charges unless the bank had made an error.

Thanks you for that insight into the workings of UK banks.

Your explantion goes a long way to proving that the majority of banks are (as Martin has explained on numerous previous occasions) THE ENEMY and that their 0.1% industry-standard interest rate on current account credit balances is nothing more than their contribution to 'rip of Britain'.

To clarify that conclusion, consider the implication of the enlightening "A valued customer would keep his savings with us" sentence.

In other words, "Current account customers who blindly allow us to pay them well under the going rate on their savings as well as on the credit balance in their current account, qualify for 'valued customer' status and I will then consider not charging them."

AndyR_3

Your explantion goes a long way to proving that the majority of banks are THE ENEMY and that their 0.1% industry-standard interest rate on current account credit balances is nothing more than their contribution to 'rip of Britain'.

I'm not sure how my reply (which basically said I'll refund charges for valued customers) makes us the enemy. Perhaps you could expand on that point?

MarkyMarkD

Yes, I didn't understand Heinz's conclusion from AndyR's post, which pointed out that bank staff take a thoughtful approach, reflecting customer loyalty, when deciding on the waiving of fees.

How do you think AndyR should behave, Heinz? Waive all fees for customers who can't manage their accounts properly? Or not waive them for anyone at all? Because those are the alternatives to his thoughtful approach.

AndyR_3

In other words, "Current account customers who blindly allow us to pay them well under the going rate on their savings as well as on the credit balance in their current account, qualify for 'valued customer' status and I will then consider not charging them."

Without wanting to say which bank I work for (for obvious reasons), our interest rates are not "well under the going rate". I will admit that our rates don't quite match those offered by ING, but ING don't have a network of over 1000 branches to maintain.

Most current accounts lose the bank money. That is a fact. The only current accounts which the bank make money on are those where someone has a stupidly high balance, a massive overdraft, or pays a monthly fee for a premium type of account. Therefore those customers who simply use us as a clearing bank are costing us money. I personally would like to see everyone pay fees that reflect the cost to the bank of their account (eg a few pence for each cheque etc), but people in this country wanted so called free banking.

What other industry offers its product for free?

sergeant121

Most current accounts lose the bank money. That is a fact. The only current accounts which the bank make money on are those where someone has a stupidly high balance, a massive overdraft, or pays a monthly fee for a premium type of account. Therefore those customers who simply use us as a clearing bank are costing us money. I personally would like to see everyone pay fees that reflect the cost to the bank of their account (eg a few pence for each cheque etc), but people in this country wanted so called free banking.

What other industry offers its product for free?

Banks do not offer their products for free.

To suggest that conveniently overlooks the fact that most customers keep their current accounts in credit (by whatever amount is irrelevant) and the bank uses that money to invest at a higher rate than it pays its customer.  Customers who do not keep their current account in credit are, rightly, charged accordingly.

Those 'enjoying' 0.1% interest on the credit balance in their current account are being ripped off by their bank - which is using its customers' money to make considerably more (if it's not, it shouldn't be in the business).

MarkyMarkD

I know where you are coming from, Heinz, but that doesn't cover it.

Many people have an average current account balance of less than £500. This earns the banks around £23.75 per year.

That doesn't come remotely close to the costs of running the account.

FWIW I agree with AndyR - there is lots of cross-subsidy from those who keep larger balances at derisory rates, to those who keep minimal balances and do lots of pointless (if charges were taken into account) transactions.

MAGICCAT_3

How much does it cost to run an average current account for a year?

Jay-Jay_4

It would be interesting to see how bank customers would feel about this.

On pay day, draw out all your money.
Go to the post office and pay your utility bills with cash.
Leave your cash/debit cards at home when you go shopping and take just cash.
Keep all your savings under your mattress.
Pay your mortgage by walking to your lenders address and paying cash.
Do the same with council tax.
Forget buying on-line, you don't have a card.
The list is endless.

It's been interesting reading this thread, ok so interest rates aren't great for savings and charges are high but if you use your account like most people ie: have your salary paid in, write cheques, use plastic cards and have DDs and Standing orders then you're having a pretty good, convenient service.

A bank isn't a public service, it's not a charity, it's there to make money. You can use the facilities for free if you stay within the terms of the account and that's quite handy really unless you liked the idea of drawing out all your money and doing everything the hard way.

Shylock

Lots of convenient services out there in all walks of life; all being open about what they'll cost so you can compare, contrast and make a choice.
Appearing to offer a "free" or "low cost" banking service, but actually relying on penalty charges to finance it is less than ethical.
Charge me more interest on the overdraft; charge me a nominal monthly fee; all subject to the competitive nature of the banking market.
Penalty charges are in the small print and ignored because we never think they'll affect us.
That suits the banks because it takes out the competitive element. But it's a s**t way of treating customers.
They should be striving for a "win win" situation. Any arangement where one party see the other as the "enemy" is bad long term.