Business banking charges

DontGetIt

Can somebody please explain to me why and HOW banks can get away with charging people with business bank accounts extortionate amounts for putting in a cheque or even depositing and withdrawing MY OWN MONEY.
Also they charge a monthly fee JUST FOR THE PRIVALEGE of having a business bank account.
I am a sole trader and didnt want a business bank account but the bank HSBC strongarmed me into getting one as doing business transactions through personal account they did not like EVEN THOUGH IT IS LEGAL.
If i worked for a company instead of myself and i get my monthly wage paid into my personal account each month, i do not get charged at all, So why does a business account get charged for all these things for the exact same use a personal account is used for but they get paid by a company instead of getting paid by customers. I just do not understand why they are allowed to do this when it is not a legal requirement to have a business bank acoount.
Yet they charge the earth for paying in a cheque, £1,30 PER CHEQUE. And a monthly fee just for the pleasure of using their account. Can someone please explain this to me? I am dumbfounded.

dr_adidas01

They can do it as you agreed to these charges when you signed on the dotted line to open the account.

If you didn't like these charges then you shouldn't have opened the account. Most Banks charge for having a business account so you wont escape being charged for something.

Banking is mostly free to personal customers because they only use it to do everyday things.

Business customers usually require more services i.e. accepting and sending payments to customers via bac's services or direct debits all of this costs the bank time and money and this is then passed on you as a business cost.

DontGetIt

actually i did not sign up for the monthly charge but as they decided to change their terms and conditions whenever the !!!! they like, so no i did not sign up for this, and other banks have the same charges if not worse. My point is, as this is not a legal requirement for a sole trader, how can they get away with FORCING YOU to open a business account? Is there any legal action that can be taken to sue them?

grumbler

Well, do you (your business) have a lot of savings with the bank? Do you spend a lot on the debit card?
If not, why do you think that the bank has to offer you services for free? How are they supposed to cover their expenses, let alone make some profit?

I do like free personal banking in UK, but I do realise that it's rather an anomaly than a norm. Unlike in UK, it is not the case for most countries.

DontGetIt wrote: »

...My point is, as this is not a legal requirement for a sole trader, how can they get away with FORCING YOU to open a business account? Is there any legal action that can be taken to sue them?

In fact they have no obligations to offer you an account and can close it without any reasons whatsoever. So, take it or leave it.

DontGetIt

profit? when u see how much bonuses the bankers get i dnt think you need to be worrying about these poor little banks who find it so hard to break even. JESUS CHRIST. They earn there money by RA PING the interest from us with what money we do have in the bank.

grumbler

DontGetIt wrote: »

They earn there money by RA PING the interest from us with what money we do have in the bank.

So, you do have a lot of money in the bank. What is your average yearly balance across all your business accounts with them?

DontGetIt

why does that matter? it isnt the fact of what i have in these accounts i am wondering, it is how they are allowed to get away with this extortion, because that is what it is extortion, it is not a legal requirement to have a business account for a ole trader, but they force you into getting one and if you dont they will just close your personal accounts, this feels so illegal, so why is it just allowed?

opinions4u

Do you offer your customers all your services for free?

DontGetIt

i dnt pay myself a couple million pounds bonus at the end of the year to be honest mate.

DontGetIt

i dnt also keep earning money from them constantly after they have given me the payment.

DontGetIt

what i dnt understand is, they are charging for putting money in AND withdrawing money from my business account. MY MONEY, charging me to get MY MONEY, out of their bank, MY MONEY. They charge for cheques it will only be a matter of time until they charge for online payments too, so with how technology is moving forward, they are trying to push for people like me to deal with customers through a cash only basis? Cutting out any profits for them through interest from money in an account, and also tempting people to cheat the tax man by dealing cash only with their businesses.
Interesting.