Voluntary code for bank charges - what do you want ?

[Amethyst]

What would you like to see in it ? We CAN have input into this. We will be submitting our views in the next couple of weeks and updating our PERSONAL CURRENT ACCOUNT MARKET STUDY reponse to cover everything over the past year and how we, the consumers, would like things to go forwards with regards personal banking. Your input in all these areas is invaluable.

IDEAS ?

PRE CONTRACT

We will provide, in plain intelligible language, a list and explanation of charges which may be incurred on your account.

You may opt out of any service which offers to consider payment or non payment of unguaranteed transactions if they may take you over any agreed overdraft limit. There may be a monthly fee for providing the opt out service. This will be no more than £10 per statement period.

DURING THE TIME YOUR ACCOUNT IS OPERATIONAL

We will display in our branches :
i) a notice about the current Fees and Charges applicable to all accounts.
ii) a list of services which are rendered free of charge.
iii) a notice incorporating charges leviable for non maintenance of
minimum balances and charges for deposit/withdrawal at ATM locations .

We will correct any mistakes promptly and cancel any bank charges that we apply due to our mistake.

Shall not charge any fees more than the transaction value which created it or £[15] (whichever is larger)

We shall not charge any fee for exceeding the agreed overdraft limit more than the amount by which your account exceeds any agreed overdraft limit or £[15] (whichever is larger) in any one statement period.

We shall not charge any fee for exceeding the agreed overdraft limit should the reason the overdraft limit was exceeded be due solely to charges levied by us.

We shall give you (30) days notice of any charges due to be taken from your account.

We shall only charge a maximum of 3 charges in any one day or 9 in any one statement period.



Changes in Fees & Charges

If we increase any of these charges or introduce a new charge, it will be notified at least one month prior to the revised charges being levied / becoming effective.

If you do not agree with the Changes in Fees & Charges notified to you you may close your account providing you do so within one month of receipt of the notification.

If you have an overdraft with us at the time we notify you of any changes to Fees & Charges we shall agree with you repayment terms at an affordable rate over a specified period and shall only continue charging interest as previously applied to your overdraft.

We shall not add any further charges to your account from the time you notify us you do not agree to the Changes to Fees & Charges notified to you and commence repayments on terms as agreed between us.

[natweststaffmember]

Re: Voluntary code for bank charges - what do you want ?

I would prefer it NOT to be voluntary. A code of conduct in other industries means you know that they have been rigorously assessed. A Voluntary Code means that at times you can opt in or out of it as it suits.
Furthermore, I think that FOS decision should be final and give a certain timeframe in which any adjudications and redress that is against the Institution is paid within a set period of time ie 30 days.

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

Okay so would I like to see it regulatory and not voluntary - but its unlikely to happen straight away. The OFT ARE discussing a voluntary code with the banks and we have a chance to have an input into that process - as well as continue pushing for regulation.

[ed.]

Re: Voluntary code for bank charges - what do you want ?

Why pay £10 a month to opt out?

It'll be one button on the computer. One off of a tenner maybe??

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

They were just initial thoughts of mine lol.

Lloyds control is £10 a month fee - waived for hardship peeps(unofficially).

They say it costs more cause the shops cant use shop floor limits and have to wait for authorisation on every transaction etc (unless ur on an airplane apparently)

BUT Lloyds control charges £10 per bounced transaction ON TOP of the £10 monthly fee. So that wants looking at too in the opt outy bit.

I know a code will need to be a lot more comprehensive than I've put but I dont like the way all banks are now completely different structures of charges, makes it impossioble to compare. They should all have the same structure so they can compete (as per the PCA report) so am working on the basis of the standard informal/formal overdraft type structure rather than the daily fees type structure. AND its just my initial ideas.

[natweststaffmember]

Re: Voluntary code for bank charges - what do you want ?

I think the terms of the Control account are very difficult to understand
Lloyds TSB - Control
Why would you be charged unpaid items if the control bit is stopping them being paid anyway?

[ed.]

Re: Voluntary code for bank charges - what do you want ?

Ah I wondered where it was based, yes rings bells now! lol

Not much of an opt out, but then again what do you expect from TSB. Authorisation is nigh on instant anyway isn't it? (can't you tell I don't have a working bank account anymore lol).

Least it never seems to take any longer with the missus' card on normal days, compared to holidays etc when running the debit card.

No it's a good start though, was just curious about the tenner limit. As I'd think a one off fee would be more appropriate.

Like the intro of the term to stop the snowball effect though, that is a nice touch - if they go for it!

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

Like the intro of the term to stop the snowball effect though, that is a nice touch - if they go for it!

mmm me too, think the wording needs a lot of improvement tho, as does the wording of the 'repayment of overdrafts' bitty if you dont agree to terms.

That comes from the fact that if the banks whack up their fees when you are in overdraft you can't leave the bank because you have to repay the OD and if you are struggling anyway you can't and they don't allow you to close thus stopping charges AND repay it - they make you incur more and more charges then default you wrecking credit records and pushing you into debt and costing themselves money in collection charges (although I'm sure they MORE than recoup that by the extra fees you incur whilst you wait to be defaulted to be allowed to pay the damn thing off) (oops rambled sorry)

[ed.]

Re: Voluntary code for bank charges - what do you want ?

Would it be worth then adding in a provision for overdrawn customers who wish to excercise their right to cancel on new terms being introduced, so that if they do so the overdraft charges and interest are frozen AS long as they repay X amount per month, depending on the size of the OD. ie 5% is fine if only 500, but if 5000 that's a bit different. Sliding scale of sorts or a flat 25-50 quid per month.

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

I think interest continuing is fair unless there are hardship issues.

Yes possibly a maximum repayment the banks can ask for (in terms of a % of the debt or a period the debts split over like 6 months) but they have to take into account the individuals circumstances via a CFS sheet if the consumer cannot pay the maximum - but the customer can pay more if they can/want etc to lessen the interest element - but I think that would be difficult to implement..... also possibly needs adding in about if you miss repayments on the overdraft end scheme (lol) you will be defaulted / sent to collections whatever. We have to look from the banks side too I think.

[ed.]

Re: Voluntary code for bank charges - what do you want ?

If rate of interest was included being fair, then it would have to be 'authorised' rate I would think or an average commercial rate 'that' bank offered on loans - which is effectively what the OD would become I would think.

Yeah whatever repayment would have to be dependent on circs, the level of the OD etc.....as you say actually trying to think of 'detail' for it is a bit troublesome but I suppose all we need to provide is a rough guide really. Even something as vague as 0-1000 10% per month as an average, 1001-2500 7.5% etc as a starting point. Or a fiver per hundred?

Again though, cancelling an OD in this way it's likely the consumer would seek out a replacement OD (IF different terms exist by then) so OD swopping would also be another alternative?

But yes failing to keep to the payments would have to mean collection activity resumed. It would have to be strict, but I don't want to look at it from the Banks end lol

OD End Scheme has a nice ring to it PMSL

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

Any further thoughts on this ? It is what the OFT are proposing to do so will have a big impact on the future of charges if we can get some input into it (as we have been asked its only polite to respond isnt it )

[natweststaffmember]

Re: Voluntary code for bank charges - what do you want ?

I think the interaction of fees needs explaining with examples as well as crossover fees. I know there is talk of something stating that there should be a yearly statement saying how much the account has cost them in fees which I think is sensible.

[Amethyst]

Re: Voluntary code for bank charges - what do you want ?

Thats one of the PCA proposals isnt it? If you can find it a paste and reference it would be handy.

[natweststaffmember]

Re: Voluntary code for bank charges - what do you want ?

"C.5 The OFT considers that these results support the OFT's belief that monthly information on costs which is summarised or highlighted in some way would be valued by consumers. We also believe that this research shows that annual cost of account information would be valued by those consumers that need it the most – those that incur charges"

OFT1153--annex c