Bank Charges Test Case Article discussion

esmerellda

http://www.oft.gov.uk/advice_and_resources/resource_base/market-studies/current/personal/personal-test-case/personal-documents

Official Documentation from test case - is worth reading

g-mat_2

I have sent the first letter to the Halifax, I received a reply to say they are looking into the charges, it has been over two weeks should I send the second letter or wait for a reply when they have finished there investigations?

g-mat_2

The_Jester wrote: »

I mistakenly went over my overdraft last month. I received a letter from my bank stating that they have charged me a 'payment review fee' of £25.

I'm out of touch with ll the latest rulings concerning this. Do I have the right to claim it back or some of it?

Your lucky i went over my over draft by £3.00 and they slapped £133.00 charges which made me overdrawn again and another charge of £98.00 cant wait to see what they charge next month.:mad:

disleksik

QUOTE
Q. Will the test case also result in negative effects for consumers?
A. Some people think scrapping bank charges would mean an end to free banking in the UK, yet I don’t think we have free banking in the UK anyway. We have 'fees-free' banking for those in-credit; ask most people with overdrafts if their bank is free? Ask yourself, is it fair that the poor members of society are paying for the rich to have free services?
Martin- This, in my humble opinion, is the wrong question to ask. If I was a socialist I might think differently but I'm not!
The question should be "Ask yourself is it right that the financially poorly educated, financially irresponsible, net debtors in society should be expected to pay for their lack of skill in managing their financial affairs or should the rest of us be expected to subsidise them?"
Just as, due to the credit crisis and low interest rates, millions of us savers are now subsidising the profligate homebuyers (and credit card users) who borrowed above their affordability limits!! Oh silly me, that was of course also the banks fault for lending them the money in the first place!

natweststaffmember

disleksik wrote: »

QUOTE
Q. Will the test case also result in negative effects for consumers?
A. Some people think scrapping bank charges would mean an end to free banking in the UK, yet I don’t think we have free banking in the UK anyway. We have 'fees-free' banking for those in-credit; ask most people with overdrafts if their bank is free? Ask yourself, is it fair that the poor members of society are paying for the rich to have free services?
Martin- This, in my humble opinion, is the wrong question to ask. If I was a socialist I might think differently but I'm not!
The question should be "Ask yourself is it right that the financially poorly educated, financially irresponsible, net debtors in society should be expected to pay for their lack of skill in managing their financial affairs or should the rest of us be expected to subsidise them?"
Not everyone who has had bank charges are the above. They may have made one error in budgetting causing a shortfall and therefore been charged and not refunded. They may have had a death in the family which reduced income and lead to bank charges. Furthermore, the Banks' themselves have already stated the "free in credit" model of bank charges. You don't choose your family or your upbringing. Many people trusted in Banks'(even as I say that I am laughing my head off)

Just as, due to the credit crisis and low interest rates, millions of us savers are now subsidising the profligate homebuyers (and credit card users) who borrowed above their affordability limits!! Oh silly me, that was of course also the banks fault for lending them the money in the first place!

Banks' are not the "helpful friends" you may think them to be. Bottom line is always going to be profit. The "what is in it for me and me alone" factor.

Nathan_Spleen

disleksik wrote: »

QUOTE
net debtors in society should be expected to pay for their lack of skill in managing their financial affairs

The net debtors in society are the better off. They borrow far more than the poor.

Ally118

Hi,

I have opened a current account with a different provider so would like to close my old account (which I have bank charges on from a few years ago). Is it possible to claim the bank charges back after closing this account or do I need to keep it open until after the claim has been completed?

Many thanks

natweststaffmember

Ally118 wrote: »

Hi,

I have opened a current account with a different provider so would like to close my old account (which I have bank charges on from a few years ago). Is it possible to claim the bank charges back after closing this account or do I need to keep it open until after the claim has been completed?

Many thanks

Yes to claiming the bank charges and no you don't need to keep it open until after the claim has been completed.

PhiltheBear

disleksik wrote: »

The question should be "Ask yourself is it right that the financially poorly educated, financially irresponsible, net debtors in society should be expected to pay for their lack of skill in managing their financial affairs or should the rest of us be expected to subsidise them?"

Fortunately you don't subsidise them. The banks offer 'free' accounts because they can use your money to make themselves profits. If there were no 'bad accounts' the banks would still offer free banking, simply because if your account is in credit it means you are loaning the bank 'free' money that they can invest.

The fact is that the charges that are imposed on people for breaking bank conditions are way out of proportion to costs. It's not about anything other than the banks unfairly cashing in. If you go 1p over whatever limit your bank sets (even if it genuinely isn't your fault) then they'll probably hit you with a charge of around £35. They say that's their cost. In reality a computer has scanned your account balance and compared it to your limit and then generated both the 'punishment' £35 and a letter to tell you about it. There's no human involvement. So, now you are £35.01 over. A few days later - possibly before you have received their letter - this will happen again. So, now you are £70.01 over. Oh, and they are charging you 20+% interest on their charges. And, this process continues ad infinitum.

(It is a matter of normal law that in debt recovery cases people living on benefits won't be made to pay more than £1 a month to a creditor because, quite rightly, the government is paying them to live and not pay court charges or debts until they can properly afford to do so. Unbelievably banks can ride roughshod over this principle and take their charges out of benefits paid into someone's bank account. In the current climate with 2 million people unemployed and getting £60 a week to live on how can they justify taking £35 a time?)

Max cost to the bank is about £2.00 for each letter - and that's being generous (I know this because I have set up systems for banks which generate customer statements and I've been through the whole mechanism of sending out such missives).

The simple fact is that those charges are pure profiteering and have NO effect on other clients. The banks' PR message is that all 'good' accounts will suffer is pure spin. The only thing that will suffer is their profits.

Arguably, with the proper reforms and policing, banks will not be allowed to get away with this any more. So, don't worry about losing your free banking - it's a competitive market out there and there's always going to be at least one bank offering free accounts.

gucciluder

Hi, I will be moving abroad (permanently) in the next six months. What will happen to my claim? Would you recommend to escalate the claim? Thanks for your advice!