Direct Debit Admin Fee?!

growse · 23 Apr 2007 at 13:44

basmic said:
Customer goes overdrawn by 50p. Bank charges customer approx £25 for going overdrawn. Actual admin cost to bank is about £3.

So for the sake of 50p, the bank has just made £22 profit.

Don't go overdrawn then. I really don't see what's complicated? To be honest, I'd rather see them charge more if it'd make people stop being fiscally irresponsible. How many people would go overdrawn if it cost them £200 a time?

ps3ud0 · 23 Apr 2007 at 13:44

Dolph said:
Easy solution, control your spending

Its your responsibility that when a DD is drawn that you have the funds to cover the payment, if not the bank should levy a fee. I dont agree it should be £x amount, but you cant disagree on the fact that when you sign up for any DD it says that in black and white...

ps3ud0 :cool:

basmic · 23 Apr 2007 at 13:45

Dolph said:
Easy solution, control your spending

I have, to the extent that the only time I went overdrawn it was the bank's fault - and I got my money and £25 fee back in the hour.

basmic · 23 Apr 2007 at 13:48

growse said:
Don't go overdrawn then. I really don't see what's complicated?

basmic said:
I have, to the extent that the only time I went overdrawn it was the bank's fault - and I got my money and £25 fee back in the hour.

Where did I actually say I had actually gone overdrawn in this thread?

Are people automatically assuming I am going overdrawn, and complaining about the fees? If so, then those people are foolish for assuming such a thing.

growse · 23 Apr 2007 at 13:49

basmic said:
Where did I actually say I had actually gone overdrawn in this thread?

Are people automatically assuming I am going overdrawn, and complaining about the fees? If so, then those people are foolish for assuming such a thing.

You invented a hypothetical customer. My advice was directed at this hypothetical customer.

Dolph · 23 Apr 2007 at 13:51

basmic said:
I have, to the extent that the only time I went overdrawn it was the bank's fault - and I got my money and £25 fee back in the hour.

Exactly how it should be if it wasn't your fault.

However, your hypothetical situation implied it was the customer at fault, and hence the customer could easily have avoided the charge.

basmic · 23 Apr 2007 at 13:55

Dolph said:
Exactly how it should be if it wasn't your fault.

However, your hypothetical situation implied it was the customer at fault, and hence the customer could easily have avoided the charge.

Just as easily as the bank could stop the excessive charges. Even if they stamped a £5 charge on customers, it would be a lot more realistic than £25.

All large charges do to people who don't have deep pockets, is make life harder.

growse · 23 Apr 2007 at 14:02

basmic said:
Just as easily as the bank could stop the excessive charges. Even if they stamped a £5 charge on customers, it would be a lot more realistic than £25.

All large charges do to people who don't have deep pockets, is make life harder.

I can tell you from personal experience that if you're hard up, the first thing you do is figure out exactly what you can and can't afford. I was much more responsible with my money when I only had £44 per week as opposed to today when I have a more stable job + salary. I'm responsible enough to make sure that I don't go overdrawn, but I'm in the knowledge that if I do that then I can afford the charge.

If you're not responsible with money when you don't have much, you probably don't have much of a brain either.

On top of that, if the bank did lower the £25 charge to £5, a) where would they get that £20 profitability they used to have from? and b) what the hell is going to disincentivise people from going overdrawn?