Banks win in High court (overdraft charges etc)

[Gazwag]

I didnt say the charges were fair I just said it was good that the banks didnt lose to avoid one more step towards USAGB and the claim for anything culture. Those who moan about DD's sending them overdrawn should really buy a cheap calender and make a note when those DD's will go out.

Now everybody can campaign for fair charges with the bank which offer those winning.

 

[Mellotron]

eithr you added an extra "0" or you are telling fibs. £30 for overdrawn, similar for a letter informing you, repeat each month. so most after one month would be £50-60. now after a year i might be £500 if you didnt sort it out. (i bank with HSBC and have gone over my overdraft limit)

I will look for the statements. Each overdrawn charge brought with it a further referral charge. It got ridiculous. i.e. the initial £30 charge brought a further £30 charge, brought a further £30 charge etc. It all happened very quickly, they didn't seem to have charging periods, it was an automated thing.

 

[cjd]

You are joking right? The banks have the advantage of the depositors money, usually on a long term basis, and now you're suggesting that as well as that depositors should be charged for the privilege as well?

Maybe I should be charging the bank for loaning it to them in the first place? (oh, that'll be the interest then).

?



Anyone who leaves more than a "working" amount of money in their current account needs to take a basic course in common sense........and change their bank.

On the occasions when I have had more than a "working" amount in my current account, my bank have advised me to place it in deposit accounts, where it receives a far better interest rate.......(as it should do of course).

A current account is just a "working" account. To use at a moments notice, by you, at any time. For that, you should expect to pay a fee for the work done by the bank.

For amounts more than a "working" limit.....put it in the proper accounts.

 

[Mellotron]

Those who moan about DD's sending them overdrawn should really buy a cheap calender and make a note when those DD's will go out.

You're still missing the point that thousands, possibly millions of people do their best to look after their money but simply aren't making enough or have other costs or factors that they are struggling with, and are unwilling to take out loans that will in the long term just send them further into a spiral of debt.

I have never owned a credit card and am definitely NOT part of the money for nothing "posse".

Yeah, I used the word posse.

 

[beorhthelm]

I will look for the statements. Each overdrawn charge brought with it a further referral charge. It got ridiculous. i.e. the initial £30 charge brought a further £30 charge, brought a further £30 charge etc. It all happened very quickly, they didn't seem to have charging periods, it was an automated thing.

probably find their system was on the blink and a word at the branch would have resolved back to a simple one fee.

 

[Herr Tubthumper]

I didnt say the charges were fair.

The fairness element is irrelevent. I thought the charging of £25 upwards for a letter was illegal as it went against legislation which clearly stated banks could not penalise people or charge punitive amounts. In fact, it was so clear-cut that many banks were paying out in the run up to the appeal. Barclays, my bank, was one of them.

 

[Gazwag]

Yes but those people should also know how much its going to cost them if they go over their authorised overdraft.

I'm sure thousands of people also go down the pub, after buying their fags, and spend the evening moaning about the bank charges.

Yes sometimes the unusual happens, so visit the bank and explain and a solution may be available

 

[Curious Orange]

?



Anyone who leaves more than a "working" amount of money in their current account needs to take a basic course in common sense........and change their bank.

On the occasions when I have had more than a "working" amount in my current account, my bank have advised me to place it in deposit accounts, where it receives a far better interest rate.......(as it should do of course).

A current account is just a "working" account. To use at a moments notice, by you, at any time. For that, you should expect to pay a fee for the work done by the bank.

For amounts more than a "working" limit.....put it in the proper accounts.

Well, I'm glad that you are aware about the proper use of a current account. The banks still have the advantage of all the depositors money though - so your point is?

 

[clapham_gull]

this argument is so stupid. why can they not make money at this? do you only pay the cost of production for a beer, loaf of bread, sofa, car etc.? this is what banks do, make money from charges and lending.

Because legally it's a penalty clause and different from other charges.

You have to forget the morality of it for a minute, they've possibly been doing something legally naughty for years.

They got away on a legal technicality, since customers have agreed to them being naughty when they open an account.

They really need a slap on the wrist over a number of issues. My worst experience was being taken into a room under the explanation that they wanted to discuss something about my account.

I left there for ten minutes and when someone eventually arrived, I was asked a number of security questions especially regarding my mortgage repayments. In total I was in the room for almost half an hour.

The outcome ? They were simply trying to sell me a mortgage nothing more nothing less.

I was livid and the bank in question gets told very promptly where to go whenever they try and sell me something.

They seemed to have forgotten over the years they have customers and play on the fact that most people never change their current account.

 

[Simster]

Well, I'm glad that you are aware about the proper use of a current account. The banks still have the advantage of all the depositors money though - so your point is?

A current account should not have much money in it for long, and is transacted upon daily.

Lets say your *average* balance is £500 a month, and you make 50 transactions a month (DDs, ATM, cheques, SOs and others).

Well your £500 can be loaned out by the bank at about 8% a year (and I'm being generous!), which is about £3 a month.

Yet you seem to be of the opinion that the bank is already raking it in from your current account balance.

 

[drew]

People are missing the point here. Its not that banks are not entitled to recoup any expenses they have incurred if someone steps over the overdraft limit it is the fact they are taking the piss with charging £ 80 for a returned dd and charging £ 35 if someone goes £ 1 over the limit.

I am amazed at the bank arse lickers on here considering they have virtually single handedly bankrupt this country and see it back 30 years for which it is costsimng us
£ 13000 per person to cover their bad debts by spunking tens of billions of pounds in the USA sub prime market.

They then have the check to criticise individuals for not managing their acounts to the letter and stealing , yes stealing money with wheel clamp style bank charges.

This is a very bad day and you can expect these fees to now be aboused, ie £ 150 for a bounced dd, why not £ 500 ?. The banks now have carte blanche to do what they want.

I thought the current mess we are in is because banks lent money to people who don't or can't manage their own finances and pay it back. How is that different from people who don't arrange overdrafts and take the piss.

As for Mellotron, on what do you base your 20% being people taking the piss.

 

[Curious Orange]

They seemed to have forgotten over the years they have customers and play on the fact that most people never change their current account.

One of the reasons that my Dad left the industry was because it became more about selling than banking. It does irritate me when I go into do one thing and somebody tries to sell me another product (irrespective of whether it is relevant), it annoys me as a customer and I'm fairly certain that the bank employees don't like doing it either - but it is part of their jobs these days.

 

[Simster]

I thought the current mess we are in is because banks lent money to people who don't or can't manage their own finances and pay it back. How is that different from people who don't arrange overdrafts and take the piss.

You're both right really. But the difference is that whereas if you are declared bankrupt and lose your home after defaulting on your mortgage, the banks have simply gone cap in hand to the tax payer to cover their piss poor loans.

 

[Curious Orange]

A current account should not have much money in it for long, and is transacted upon daily.

Lets say your *average* balance is £500 a month, and you make 50 transactions a month (DDs, ATM, cheques, SOs and others).

Well your £500 can be loaned out by the bank at about 8% a year (and I'm being generous!), which is about £3 a month.

Yet you seem to be of the opinion that the bank is already raking it in from your current account balance.

No - they are raking it in from all of my deposited money.

 

[cjd]

Well, I'm glad that you are aware about the proper use of a current account. The banks still have the advantage of all the depositors money though - so your point is?

Oh god.

The banks have to have the money in your current account, ready for you to use at ANY time. Therefore (unlike long-term deposit accounts) they cannot use it to lend to other customers.

Your current account (apart from being a "working" account) is no different to (as another poster remarked) stuffing it under your mattress.........just a bit safer. Oh.......and when you want to pay your electricity account.........you can either pay

1a) By DD (with a bank account) or

1b) a cheque by post (with a bank account)........or else

2) You can walk from wherever you live to your nearest head office accounts department, in probably a different town and pay by cash.......if you stuff your money under a matress.

I think if you use the bank for the much safer option......you should pay a charge........don't you...?

 

[Uncle Spielberg]

I thought the current mess we are in is because banks lent money to people who don't or can't manage their own finances and pay it back. How is that different from people who don't arrange overdrafts and take the piss.

As for Mellotron, on what do you base your 20% being people taking the piss.

No , not at all. The amount of people not paying their mortgage is up but the repossessions forecast is 48000 down from 75000 now. Also net lending is going down for the first time ver. Lenders are getting more in mortgage capitol repayments than they are lending out in new mortgages each month. This also applies to credit cards and loans where the repayment back are far higher than any new lending.

We are in the mess we are becuase the banks spent tens of billions of pounds in bundled secured packages against American sub prime mortgages/properties which went down the toilet. They LOST this money on our behalf. There is no intrinsic problem with the mortgage books of the lenders here now especially with prices going up.

This is 100% down to the banks buying packaged securities in the USA.

 

[Simster]

No - they are raking it in from all of my deposited money.

Yes I know, but we're talking about current account charges. As I thought we all agreed, savings accounts simply don't attract these ridiculous charges.

 

[Uncle Spielberg]

You're both right really. But the difference is that whereas if you are declared bankrupt and lose your home after defaulting on your mortgage, the banks have simply gone cap in hand to the tax payer to cover their piss poor loans.

Again the loans in the USA not the UK.

 

[MJsGhost]

Because legally it's a penalty clause and different from other charges.

You have to forget the morality of it for a minute, they've possibly been doing something legally naughty for years.

They got away on a legal technicality, since customers have agreed to them being naughty when they open an account.

They really need a slap on the wrist over a number of issues. My worst experience was being taken into a room under the explanation that they wanted to discuss something about my account.

I left there for ten minutes and when someone eventually arrived, I was asked a number of security questions especially regarding my mortgage repayments. In total I was in the room for almost half an hour.

The outcome ? They were simply trying to sell me a mortgage nothing more nothing less.

I was livid and the bank in question gets told very promptly where to go whenever they try and sell me something.

They seemed to have forgotten over the years they have customers and play on the fact that most people never change their current account.

I had that from the Nationwide after paying a reasonably large cheque in. They sat me out the back, made me wait, did the security questions, then tried to sell me all sorts of savings products. The cheque was only staying in until it cleared so I could pay a chunk off the mortgage, clear credit cards etc. Waste of 15 minutes of my life the wankers!

I agree with the rest of your post too, but also believe that people should accept that being charged a (small) fee per month to hold a current account is the fairest way all round.

 

[Uncle Spielberg]

Banks are only interested in selling you all the insurances under the sun, often inappropriate and certainly expensive and uncompetative. Anyone who does their mortgage through their bank BEWARE. You may get a better deal, although not necessarily anymore but when you take the whole package into account you probably won't.