Business banking charges

grumbler

Well, - playing a devil's advocate....

Unfair T&C can be a reason for complaining.

If more reasonable complaints take months, the ombudsman has to do something to change this:

- work more efficiently
OR
- expand
OR
- take steps to get new efficient regulations in place to cut the number of complaints.

JuicyJesus

By OP's logic, he can charge as much as he likes for his services, whatever they may be, but banks can't because they make more money than he does.

Banks can force you to not use a personal account for business because the contract you sign with them says you won't. Simple as that. Amazingly, running bank accounts for free for everyone, regardless of how much of THEIR MONEY they pay in (handling and storing cash being remarkably expensive, as well as clearing cheques) causes you to lose money.

I also strongly object to charges of a small percentage of cash paid into a bank account being compared to violent sexual assault. That's either offensively minimising the serious and incredibly traumatising crime of rape or it's being overly melodramatic about a fairly standard contractual arrangement. Pick one.

grumbler wrote:

If more reasonable complaints take months, the ombudsman has to do something to change this:

As far as I'm aware, they're hiring more people. But they have the issue that the current overwhelming backlog is caused by one single product - PPI. They can't hire people fast enough to overcome the torrent of complaints they have to deal with; more to the point, when the PPI furore dies down and as cases become timebarred, they'd then have excess staff sitting around kicking their heels.

The issue they have is that there's no regulation in the world that would stop already extant PPI cases from being brought.

grumbler

JuicyJesus wrote: »

...because the contract you sign with them says you won't. Simple as that. ...

If it was that simple any laws/regulations on unfair terms in contracts wouldn't be needed.

opinions4u

grumbler wrote: »

If it was that simple any laws/regulations on unfair terms in contracts wouldn't be needed.

Getting charged for each service used is long accepted and long established practice in all walks of life. The FOS or a court will not say it's unfair because it isn't.

The FCA sees the free banking model that benefits the personal current account sector as something that distorts the market. So they will not be encouraging banks to stop charging business customers any time soon.

I'm all for people using the FOS where there is a genuine gripe that has reached impasse. But if Tesco beans cost too much every time you shop go to Asda or stock up when they're on BOGOF.

grumbler

I think you have missed the point completely.
It was not about fair/unfair, good/bad etc.
The point was that it was not 'simple' just because the contract says so.

pmduk

Most of the unfair terms legislation does not apply to businesses, probably because they're thought to be able to look after themselves.

How much scope does the OP give to his customers to dispute charges?

JuicyJesus

pmduk wrote: »

Most of the unfair terms legislation does not apply to businesses, probably because they're thought to be able to look after themselves.

How much scope does the OP give to his customers to dispute charges?

It does amaze me how banks and only banks are the only organisations where it's apparently OK to dispute charges for services of after you've used them.

I feel fairly strongly that my utility prices are stupidly high, but if I were to suggest people ring up their electricity companies and start warbling on about unfair charges and unfair contracts if they receive a big bill for running massive electric heaters all day that consume lots of energy I'd be laughed at. Similarly, if I were to spend all day every day downloading massive amounts of !!!!!! and warez from the Internet, I would be laughed at if I suggested I should "reclaim" the resulting bill from my ISP for overuse. But if I go overdrawn without any money in my account because I don't check my balance, that's "unfair" and I can whinge until I get my charges back and that's fine.

So - why the discrepancy?

jonesMUFCforever

OP you don't say what line of business you are in - but I am 100% sure that you will not work for free.
Banks have overheads and offer you free chequebooks credit and debit cards (with the infrastructure to make it all work). They also offer you a building to take in and keep safe your takings and process any cheques that might be payable to you.
They may offer your a credit line such as a business overdraft or loan or mortgage which of course they get from mr pie in the sky bank for free! LOL

If I was you I would calm down and get a good night sleep tonight then think it through again tomorrow.

The_pc_tech

If you accept most of your payments by electronic means Barclays and I think Santander do business bank accounts where these payments are free and you only pay for any involving cash or cheques and a fixed monthly fee as I've been looking into the Barclays one myself.

As has been said, banks are businesses like yourself, if they did not make money they wouldn't be able to run the payment and clearing systems we all use.

I absolutely agree that money taken in via retail and business banking shouldn't be allowed to be risked by investment banking sections of these banks and the charges for things such as unauthorised overdrafts should perhaps be proportional to the unauthorised borrowing amount incurred but they are in business, just like you.

Money-Saving-King

DontGetIt wrote: »

the fact that IT IS NOT LEGALLY REQUIRED to have a business account as a sole trader

And your not legally entitled to free banking either!!

DontGetIt wrote: »

but the banks FORCE you to get one so they can charge you just for the pleasure seems illegal and immoral

Immoral not to give in to your demands and provide you with everything you want for free?

If you're a Sole Trader I wonder how you would react to one of your customers being like you and demanding everything you do for them is free? You probably wouldn't be a Sole Trader for long thats for sure!