Bank Charges Test Case Article discussion

johnny_storm

I was pleased to see a newsletter from moneynet.co.uk today which backs up exactly my position.

http://www.moneynet.co.uk/newsletter/newsletter/91/iss91article-1mnet.php?emvid=7863657010&lctn=art2&campaign=moneynet&keyword=newsletteriss91MNET

I quote

"What's the likely cost to UK banks and how will they respond?

We estimate that there are 50 million current account holders in the UK. This means that if the banks have to repay 6 years worth of charges then the total potential loss of income is £18 billion plus £3 billion per year moving forward. However, two things will help to mitigate the loss - one is that not everyone will be bothered to reclaim and secondly it's not realistic to suppose that the banks won't be allowed to charge anything for administering these accounts. It's quite likely that the OFT will rule that the banks can charge £10 - £12 per 'offence' meaning the banks will lose somewhere in the region of 2/3rds of this income moving forward or £2 billion per year. If we also assume that only 20% of all customers will reclaim back charges then the banks will suffer an additional £3.5 billion loss.

So what will the banks do moving forward? Well, put simply we will see the end to free banking which means that everyone will end up paying the price. With approx 50 million bank accounts in the UK this means that each customer could end up paying somewhere between £50 and £100 per year in additional charges. Surely, a bit of a hollow victory for the consumer and one which the OFT should take heed of before reining in the banks too severely! "

chipbeck

johnny_storm wrote: »

I was pleased to see a newsletter from moneynet.co.uk today which backs up exactly my position.

http://www.moneynet.co.uk/newsletter/newsletter/91/iss91article-1mnet.php?emvid=7863657010&lctn=art2&campaign=moneynet&keyword=newsletteriss91MNET

I quote

"What's the likely cost to UK banks and how will they respond?

We estimate that there are 50 million current account holders in the UK. This means that if the banks have to repay 6 years worth of charges then the total potential loss of income is £18 billion plus £3 billion per year moving forward. However, two things will help to mitigate the loss - one is that not everyone will be bothered to reclaim and secondly it's not realistic to suppose that the banks won't be allowed to charge anything for administering these accounts. It's quite likely that the OFT will rule that the banks can charge £10 - £12 per 'offence' meaning the banks will lose somewhere in the region of 2/3rds of this income moving forward or £2 billion per year. If we also assume that only 20% of all customers will reclaim back charges then the banks will suffer an additional £3.5 billion loss.

So what will the banks do moving forward? Well, put simply we will see the end to free banking which means that everyone will end up paying the price. With approx 50 million bank accounts in the UK this means that each customer could end up paying somewhere between £50 and £100 per year in additional charges. Surely, a bit of a hollow victory for the consumer and one which the OFT should take heed of before reining in the banks too severely! "

How many times are you going to reiterate on this. The majority of the money morons like myself agree that we should pay for being plonkers. If you can hand on heart agree that we should have been penalised to such vast amounts then you probably do, or should work for a bank.
I appreciate that it may be difficult for you to find an extra 50 or god forbid 100 pounds a year, but do you not think that the banks can then start trying to get more customers by charging less. You know like most of the other things you buy or work you have carried out where you look to get the best service/value. I know this will be a challenge to the banks as they have been used to just taking as much as they decide from the afore mentioned morons.

Smasher

The end of free banking will not have been "caused" by people reclaiming. It will have been "caused" by banks having been found to have acted in an unfair or unlawful manner and so fueling their relentless greed elsewhere..

The above is the predictable spin. :rolleyes:

johnny_storm

Im not in favour of anything that costs me more money yet has no benefit to me.

I wonder if next year Martin will launch a campaign for people to reclaim their speeding tickets, then road tax goes up by £150. The principle is EXACTLY the same.

chipbeck

johnny_storm wrote: »

Im not in favour of anything that costs me more money yet has no benefit to me.

I wonder if next year Martin will launch a campaign for people to reclaim their speeding tickets, then road tax goes up by £150. The principle is EXACTLY the same.

Never seen so many repeats am I on MSE or BBC?

One thing you can answer me that's been troubling me Johny. When you go out for a drink with your mates how do you ensure that the piece of paper you make a note of who's bought the round, what was in the round and how much did each individuals drink cost, remains dry and in a readable condition.

Pencilled you in as one fun guy to be out with.

johnny_storm

chipbeck wrote: »

Never seen so many repeats am I on MSE or BBC?

One thing you can answer me that's been troubling me Johny. When you go out for a drink with your mates how do you ensure that the piece of paper you make a note of who's bought the round, what was in the round and how much did each individuals drink cost, remains dry and in a readable condition.

Pencilled you in as one fun guy to be out with.

Glad to hear it.

Smasher

johnny_storm wrote: »

Im not in favour of anything that costs me more money yet has no benefit to me.

Me neither

johnny_storm wrote: »

I wonder if next year Martin will launch a campaign for people to reclaim their speeding tickets, then road tax goes up by £150. The principle is EXACTLY the same.

How ridiculous. :laugh:

budgie69

Hi
I've been reading all the banter going on and I have to say something! I have never thought banks were free plus they need us as much as we need them. All any of us want is fair play, and what the banks are charging is ridiculous. It's like being legally mugged!!

If I hadn't been charged over £800, I wouldn't even have an overdraught. :mad::mad::mad:

Frenzy

Rite i did start a claim this time last year an was obviously turned away, at the time i was on benefits an was going to have the court fees waived, but once i started working i couldnt afford the court fees, and as far as i know the claim was closed. how do i go about re-reclaiming now? do i have to start from scratch again?

est0777

hi, i have heard that banks have a right to close my account if i put in a claim for my bank charges. i am a f/t student and have an overdraft on my student account that i am not in a position to pay back at the moment. is i possible to pay back in instalments if the bank coses my account.