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Bank Charges.. Only One Possible Outcome??

Discussion in 'General Discussion' started by itsallaboutyou, Jan 14, 2008.

  1. stevenazari1

    PermaBanned

    Joined: Oct 21, 2007

    Posts: 1,518

    there will be no charges for them to manage your account, it is a requirement for the banks to provide you with it therefore they are not allowed to charge you. banks are non-profit organisations and yes although we see clearly the profits they make, this is alledgedly from investments, shares and the like.

    banks never charged this amount in the 80's, there is no need to charge it now especially with the aid of technology.
     
  2. mjer1984

    Hitman

    Joined: Jun 26, 2007

    Posts: 652

    Location: West Molesey by the river

    The banks may well lose, but they should charge people who go below absolute zero it would be much worse if they were to just cut you off and cancel all transactions rather than charge you.

    From my experience people I know that have been charged by banks it was there own fault anyhow, because they had to go on holiday to Spain, or they had to have skyplus, and had to go out every Friday and Saturday night. Even though they knew full well there would be no money at the end of the month. Plus one light month would have just solved there issue but they are too dim to cut back and so pay out every time.
     
  3. platypus

    Caporegime

    Joined: Jul 25, 2003

    Posts: 38,980

    Location: Rhône-Alpes+Cambridge

    If this is the case, it will likely be an internet only account that requires a [fairly high] minimum monthly investment. Whilst I can't guarantee it, I think it highly likely that the high street banks will collaborate on a monthly fee.

    So the people who get hurt most by penalty charges (ie those riding close to their overdraft/account limits) will still be forced into monthly fees for their banking.

    Pardon? Can you direct me to the passage in the Banking Charter that requires them to provide you with an account? Also if you could highlight the passage that claims all banks are run on a non-profit basis?
     
  4. JAzz

    Mobster

    Joined: Oct 18, 2002

    Posts: 3,112

    My point is more the extra charges that have been put on accounts and credit cards since people have been claiming their charges back. Mostly extra interest charges and they will cover their losses eventually.
     
  5. RDM

    Capodecina

    Joined: Feb 1, 2007

    Posts: 20,465

    Working for a bank I can say that you are categorically wrong. Banks are businesses not non-profit organisations. They do not have to offer free accounts but do it because everyone else does (in the UK anyway).
     
  6. Broken Arrow

    Gangster

    Joined: Mar 13, 2006

    Posts: 142

    Extra charges? You mean charges which more accurately reflect the true cost of servicing your account without subsidising it with profits made from other account holders.
     
  7. Surfer

    Capodecina

    Joined: Dec 31, 2005

    Posts: 11,179

    Location: Glasgow

    True - however its possible we could be facing a wholescale change in this sector. (unlikey due to the obscene profits but you never know)

    Is there a case for this service because of the function it serves within society (important that you think of it as a service) to be made free to all (ie put into the hands of 'social welfare') rather than private businesses (which is what banks are presently)

    I'm just purely speculating here of course.(pie in the sky stuff really :D) It'll never happen.

    Ohh and the banks are doing very nicely for themselves atm.

    http://news.bbc.co.uk/1/hi/business/6373281.stm
     
  8. itsallaboutyou

    Hitman

    Joined: Mar 11, 2005

    Posts: 985

    Good thinking - however, this brings up a few supplemental points- why should the banks authorise payments knowing that doing so will take you overdrawn.

    Personally, I do my books the day I get paid and any spare cash I have is mine to play with... But I know when and what is going out and coming in within a few pence...

    I have a £100 overdraft - which I've never needed to use - but that is my buffer - 'hoping' for the best is not how I do things...

    This also highlights the issue of fraud - but thats for another time..

    Tom*
     
  9. Surfer

    Capodecina

    Joined: Dec 31, 2005

    Posts: 11,179

    Location: Glasgow


    Can you provide the costs to the Bank for both? ie for

    a) A subsidised account (one in which there is little or no profit)
    b) A profit generating account.

    Otherwise uhmm what exactly are you talking about?
     
  10. itsallaboutyou

    Hitman

    Joined: Mar 11, 2005

    Posts: 985

    I thought this might have been the case! Thanks for your insight..

    Tom*
     
  11. wordy

    Soldato

    Joined: Nov 30, 2005

    Posts: 6,839

    Location: Wu Han City

    I know the banks will probably start charging for accounts if they lose, but will they also be forced to re-emburse everyone they've applied the charges to?
     
  12. platypus

    Caporegime

    Joined: Jul 25, 2003

    Posts: 38,980

    Location: Rhône-Alpes+Cambridge

    This is another interesting point. What criteria will Banks place on accounts? This could backfire even further for those that walk the overdraft limit line; ie. Banks charging a higher monthly fee for those less profitable accounts.
     
  13. Surfer

    Capodecina

    Joined: Dec 31, 2005

    Posts: 11,179

    Location: Glasgow


    Doubt it would happen. If it did there would be outcry. It would certainly be interesting if it did though. Because it would be clear demarcation of the status bank accounts have in society and their purpose. That is, more a luxury? rather than a basic service for all? If we think of institutions providing a basic free service for all then its more in the social welfare/old labour camp yeah? But if it edges more in the other direction then it would lose that perception in society. And maybe that is worth something to them.

    In fact i think banks know this. There is a fine line to tread here - market perception is key.
    I havent really explained it so I think i'll have to read up more on this tbh as it seems quite interesting.
     
  14. growse

    Soldato

    Joined: Oct 18, 2002

    Posts: 7,139

    Location: Ironing

    So if the banks lose, then the fiscally reckless will be subsidised and thus encouraged by the fiscally responsible.

    And people *want* this? I certainly don't. :confused:

    How many people would have unauthorized overdrafts if the banks charged £1000 a time? So why do people do it and then complain when it's only £40 a time?
     
  15. stevenazari1

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    Joined: Oct 21, 2007

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    a charge is applied to cover the banks costs - in this case it is notifying the customer that they have gone overdrawn as all accounts are computer operated and there is no need for a clerk/manager to go over the account. the amount chargeable is the cost of the printed paper. banks seem to think that is £30. that is what is being disputed.
     
  16. growse

    Soldato

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    Since when is it true that business are only allowed to charge customers what it costs them to conduct that service? Is it illegal for Mars to sell me chocolate for 40p when it only costs them 4p to make?

    If I want to make use of my bank's unauthorised overdraft facility, I'll pay their service charge. If I'm not happy with that level of charging, I won't use that particular service. See?
     
  17. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 76,645

    That's not the same at all. The bank is not allowed to fine you, that is against the law. They are only allowed to charge you what it costs them. In the case of going over your balance the cost of a piece of paper and interest. This is what is being challenged.
     
  18. growse

    Soldato

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    Location: Ironing

    How is making use of a banking service a "fine"?
     
  19. stevenazari1

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    Joined: Oct 21, 2007

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    .... its a charge not a product/ service. :o

    and your not supposed to go over your limit hence unauthorised.

    I got charged £30 because the bank took 0.40p in interest from the account when I wasnt using it. and then another £30 the next month because I hadnt paid it off. £60 for 40p interest? no thanks.
     
  20. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 76,645

    because of the way the contracts are written and the fact they are fining you for going over. £30 is not an admin fee which is reasonable.