Bank Charges

  realist 16:34 08 Aug 2007

So the Banks are said to be planning to introduce general charges to all current account holders. Some reports say "per transaction" costing us up to £300 a year, some say flat rate of £10 a month or more.

The Banks are re-couping the lost revenue from excessive charges made for exceeding overdraft limits, late credit card payments, etc., by, in effect, penalising all their customers, including those who have always managed their finances in a way that avoided penalty charges.


  sunny staines 16:37 08 Aug 2007

a lot of customers would migrate to those that stay free.

  cream. 16:45 08 Aug 2007

Spot on.

So we who keep our accounts in good order have to pay for those claiming there money back. No doubt if their bank introduces per transaction or flat rate fee's they will be off to another free banking service.

And before anyone points out that banks need to get revenue off there customers. Our mortgage was through our bank, we use the bank for insurance and credit cards etc.

  mad1234 16:49 08 Aug 2007

i will be putting my money in another bank if my bank starts charging me for direct debits etc.

  laurie53 20:04 08 Aug 2007

My bank (First Direct) has already introduced charges for those below a certain level of "turnover" each month.

As it happens I'm above it, but I've already warned them that's it's only inertia that's keeping me on board, first time they make me stir, I'm off!

  NotSureBoutThis 20:05 08 Aug 2007

Hi Percy

What about the banks ripping of those who can less afford it!

£30.00 for a returned DD, £30.00 for being £2.00 OD, yes of course the account holder should ensure the funds should be there, but sometimes it's not always possible.

DD works on a 5 day notice, that means that if you have a DD set up for the 1st of the month, the DD company can start collecting for it up to 5 days before or up to 5 days after the 1st.

If you are paid on the last day of the month i.e 31st and the DD is called for say on the 29th due to the DD agreement, this will incur bank charges, the bank will return the DD as unpaid, yet charge the account holder £30.00 for returning it.

Now, the banks know they have been ripping folks off, which is why they have paid out to those who have claimed against them.

Are you telling me the banks are completely honest?

Let me prove how honest the banks are, my mother in law has her pension paid into her bank, she she has no savings, she knew she had a DD coming out, although was £2.00 short of the amount, pride before a fall with pensioners, rather than ask us she called the bank, and asked them to honor the DD, the bank informed her they could not do this as she did not have a good credit rating, low and behold, 2 days later she received a letter from the bank informing her that the DD had been returned, and they had charged her £30.00.

Now instead of being £2.00 OD, she was now £30.00 OD, is that an honest way to treat customers?

  Colin 20:29 08 Aug 2007

These charges, whether you think they are excessive or not, are in black & white and not hidden from you. Don't want to be charged? Don't go overdrawn or write bad cheques.

It's the same with speed cameras. They are well signed, not hidden. Don't want to give to the Treasury? Don't speed.

NotSureBoutThis - I don't understand your DD example about money being taken out on the 29th when you are paid on the 31st. If you’re not able to change the date, make sure there are sufficient funds in your account on the 29th. What difference does the date make? 1st of the month or the 29th, you’re still paying the same amount each month.

  NotSureBoutThis 20:34 08 Aug 2007

The DD is set to come out on the 1st of the month.

The DD agreement allows the companies to call for the funds 5 days either side of that date.

Whether the funds are there or not, I'm making the point about £30.00 which NO BANK HAS BEEN ABLE TO JUSTIFY.

  HCOOH 20:36 08 Aug 2007

People are already paying Bank charges because many Banks only award a very low rate of interest to current accounts,(typically 0.1%), they make money from your money and keep it.

This arrangement was started to keep current accounts that were in the black free from other charges. I just wonder how much profit "is enough".

  Colin 20:37 08 Aug 2007

NotSureBoutThis - no need to shout.

  NotSureBoutThis 20:39 08 Aug 2007

Colin, sorry, I was not shouting at you.

It makes me mad, you ask them to let you go £2.00 OD, they refuse, ten charge you £30.00.

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