Warning over bank charges test case

[EXC]

''A court case to test the legality of penalty fees charged by banks when a customer goes overdrawn could backfire on consumers, it has been claimed.''


http://www.guardian.co.uk/money/2008...kcharges.banks

[stevokenevo]

Re: Warning over bank charges test case

Julian Skan, a senior executive from Accenture's retail banking practice, said "intensifying competition, regulatory scrutiny and consumer activism" were making it harder for banks to charge a fair price for their services.

Skan, who is the author of a report on fair pricing in banking, said: "The OFT test case in January is key for banks and consumers.
"If, as a result, banks are forced to reduce their charges for unauthorised overdrafts, for instance, then prices may well go up elsewhere.

I take it Mr Skan (or is it mr scam?) believes that the banks DO currently charge fairly then?

[Guest]

Re: Warning over bank charges test case

We are back to this idea, once again, that the banks are entitled to a certain level of profit and if that is reduced, because for instance they have been making a profit from unlawful fees, then they are somehow at liberty to recoup that "lost" profit elsewhere.

Businesses make a profit if the amount received for goods or services is in excess of the original cost of those goods or services. If a proportion of that excess is due to some unlawful practice and, quite rightfully, that unlawful practice is outlawed then why do these people consider that it is a “loss” to the banks who are then permitted to recover it by increasing margins elsewhere?

[thephoenix]

Re: Warning over bank charges test case

On a lighter note:

This week saw the release of a consumer protest song about the case. I Fought The Lloyds details one customer's success in reclaiming his bank charges and is being tipped to enter the top 10 on Sunday.

If you've not heard it yet click here and scroll down a bit

http://www.moneysavingexpert.com/site/bank-charges-song