MSE News: Bank charges campaign saves consumers billions

Hanky_Panky

You miss my point - I and the vast majority of bank account holders are now subsidising them. So as I mentioned, in the scheme of things there are more people worse off - hardly very MSE and hardly a 'consumer win'.

GooliesOfFire

pmduk wrote: »

I've always preferred to transfer all of the DDs myself when moving banks. I suspect that says more about my own desire to remain in control than banks' inefficiency

I do it myself as well. I like to make sure all is done properly the way I want it, the dates I want it, the amounts I want it. Can I trust banks to do it for me? No.

And in my view people pay more for overdraft than they did before. Especially those who got stuck in overdraft with difficulties to pay it back.. and new charges make it even harder for them.

GooliesOfFire

Oh simple example.. let's say I go overdrawn by 100 quid and I'm unable to pay it back for 25 days..

Nationwide would charge me probably less than 2 quid for that
N&P would charge me 5+2 quid for that

Now the banks that charge fees per day for overdraft usage..

Santander 20 quid
Halifax 25 quid

Thank you.

WestonDave

The thrust of the article is only true if the overall take from current accounts has fallen by a significant amount. Its pretty obvious that this isn't the case as it would have left the banks with a massive black hole in their profits - profits which other than provisions for bad debts have barely varied since before this issue was raised.

So what has happened is that certain charges have disappeared, and other perhaps more hidden ways of making money have replaced them - such as lower interest on savings, higher interest on borrowings and new more subtle (but possible more pervasive charges).

tifo

Hanky_Panky wrote: »

You miss my point - I and the vast majority of bank account holders are now subsidising them. So as I mentioned, in the scheme of things there are more people worse off - hardly very MSE and hardly a 'consumer win'.

People who overdraw without a limit were charged a decline fee before the test case and still do after it.

People who use an overdraft may now get charged for using this facility.

Yet you now blame those who used to get charged returned item fees, and still do, for the banks making changes so that you now get charged for using a service you choose to use. This was a commercial decision by the banks since they won the test case anyway and didn't have to make any changes.

And who used to keep your overdraft usage free of fees other than interest? Yep, the people paying returned item fees.

And why did the banks get into the mess they did over the last few years? Because they lent your credit money many times over by lending money they didn't have and promising to pay bond bearers money made from using your money on financial markets and then losing it.

So the real money the banks made was/is from fees such as returned item, PPI etc. not your credit money which they lost.

Alpine_Star

tifo wrote: »

So the real money the banks made was/is from fees such as returned item, PPI etc. not your credit money which they lost.

No, the real money was and is still made from net interest income which is more than banks make from savings accounts and credit cards combined.

Revenue from unpaid item fees have reduced significantly as the charges have more than halved since 2008 and banks no longer sell PPI.

Hanky_Panky

tifo wrote: »

People who overdraw without a limit were charged a decline fee before the test case and still do after it. But potentially less than before unless they are really careless.

People who use an overdraft may now get charged for using this facility.

Yet you now blame those who used to get charged returned item fees, and still do, for the banks making changes so that you now get charged for using a service you choose to use. This was a commercial decision by the banks since they won the test case anyway and didn't have to make any changes. If you truly believe this then you are very niaive. Banks made changes knowing full well the !!!!!! storm that was about to hit so they could 'claim' they had already 'cleaned up'.

And who used to keep your overdraft usage free of fees other than interest? Yep, the people paying returned item fees. No - I paid for it in the interest that I didn't get on my credit balances.

And why did the banks get into the mess they did over the last few years? Because they lent your credit money many times over by lending money they didn't have and promising to pay bond bearers money made from using your money on financial markets and then losing it. Irrelevant to this thread.

So the real money the banks made was/is from fees such as returned item, PPI etc. not your credit money which they lost.They haven't lost my money so not really too sure what this point is supposed to mean.[/QUOTE]

Answers above.