What if the bank loses?

[Nattie]

http://money.guardian.co.uk/saving/b...150902,00.html

[biscuits]

Re: What if the bank loses?

How did we pay for bank accounts before the penalty charges came in?
As far as i know they just made the interest on having our money in their account

[Happyolddog]

Re: What if the bank loses?

Sheer bl**dy greed.

If the court case currently under way to test the legality of £30-plus penalty charges for unauthorised overdrafts and bounced direct debit finds against the banks, the British Bankers' Association warns that it will almost certainly signal the death of the UK's unique "free" banking model.

This is how I see it. The banks brag about ever increasing profits year after year. Okay most of the profit maybe legitimate but a large proportion is from the misery of the poorer members of society. Even our OAP's have to have a bank account to access their state pensions.
The banks are proposing to levy fees for using the banks facilities. I did some years ago work in the financial sector and as I understand it, the banks have a spread. This being the percentage difference between what they pay to savings and what they charge borrowers. How can they justify any further fees? The BBA wants to extract its ugly head from its own backside and put a stop to this profiteering practice.
This is just another example of the great British wealth devide. The rich are getting richer, why the rest of us are left behind with the bill.
Bring on the revolution.

Best wishes,
Hod...Liam..

[iancognito]

Re: What if the bank loses?

How did we pay for bank accounts before the penalty charges came in?

When I first started work, we were charged for bank accounts, or rather charged for cheques (not many DD's in those days) I think the charge was abou 10p per cheque.

There was however a long period between the introduction of 'free' banking and the increase of penalty charges to their current rip off rate when the banks profits must have been a much lower percentage of turnover than they are now.

They could afford to drop these fees and still hardly notice the difference, I still can't see why it's essential they make billions of pounds a year.

[Nattie]

Re: What if the bank loses?

I actually disagree partially with you jan. 'Free banking' came in about 1985 ish and fees were not that bad. However in the last 5 years fees have jumped up 100%. An extremely steep rise. THe argument does exist on MSE that there is a cost to send a letter, however that would be 1 letter and the rest of the system is automated. Why is the cost so high?

[Glenn UK]

Re: What if the bank loses?

According to a report for the treasury and i think in the competition commissioners reports the average cost of administering a PCA is given.

As I recall its around £45 - 75 pa per account (i could go check but I'm sure these figures are in the right ballpark).

The cost is concealed for most users as has been said by the use of the interest made versus interest paid or not as the case may be.

The free banking is a myth perpetuated by the banks and those who don't pay penalty charges.

JMHO

Glenn

[pam1]

Re: What if the bank loses?

If the FOS is free and set up by parliment , is it paid by the government?

If so they are given a cost amount for sending each letter, wouldnt that be a good enough amount to work on, as even the FOS letters are typed manualy so would be more than the banks but i bet thier allowance is much less than £30.

[Nattie]

Re: What if the bank loses?

The FOS charge the banks for any cases that have to go there. The amount at the moment is 400 quid for a personal account and 800 for a business account.

[pam1]

Re: What if the bank loses?

lmao :banana::banana::banana: so everytime i raise a case with the FSO they have to pay £400. Is that per time as if i have another issue i start another case after.

They must be paying bundles for all these bank charges cases,

My own case is realy deep and taking ages £400 seems cheap for the work put in todate.??

[Nattie]

Re: What if the bank loses?

That is per case. BUT they are not dealing with bank cases at the moment.

[pam1]

Re: What if the bank loses?

i know more is the pity, but what a cost, it must be huge added to the "goodwill" settlement of charges figures, pleased all my charges cases have been completed..has there been an estimation in FOS payments alone? wonder if they will have to cough up.