Daily Mail Comments on PCA Report

[Legal Beagles]

Complexity of bank accounts system leaves customers confused, says Office of Fair Trading

More...

[ROBSTER]

Contrived figures.... according to Angela Knight

"It is slightly contrived, I thought, that figure, because elsewhere in the report they point out something that we've been saying time and time again, and that is that 80% of individuals don't incur, for example, unarranged overdraft charges or any of those sort of things.”
THIS BIT AMENDED 17 JULY (Wrong Figure Quoted for Annual Charges)
Is that “contrived” as in they say 23% and Angela turns that on its head to come up with 80%...(surly even a banker can do that math!) and don’t forget that’s just a snap shot of 2006. What’s the percentage of account holders who have incurred a charge over the six year period, pre modern T&Cs ?.. which is fast diminishing thanks to the convenient delay at court…nice one Banks!...you are saving £7.12million a day on people not claiming whilst the court case is in process (based on the market being £2.6bn/365days).

Come on Judiciary, Come on OFT wake up and smell the coffee think £7.12 million a day (7 days a week) before you say you are “not ready for an appeal” in July.

When the history books are written, as commendable as the OFT s actions have been the Banks have pulled the wool over your eyes on this one:
Universities will lecture on the genius of the Banks volunteering for the test case, which completely quashed the epidemic of applications for charges, the waivers and stays completely one sided in the banks favour, and the spin from Ms. Knight…. the Banks have had the consumers “trousers down” on this one whilst the head prefect (the OFT) has stood by and condoned their actions. Prove me wrong……..please Mr Fingleton!



"It is very important that this banking model, which is what it is that the individuals and customers have asked for, that is free to them for their normal banking arrangements do remain."

Angie, Angie what was the question asked to come up with that answer?.. Try asking any customer if they believe its ok for their banks to inflict potentially unlawful charges so that they can “scam” what they tell their customers is “free” banking ask these customers what they tink about 3-5 days to clear "an electronic" or transfer 5 days for a cheque?

She added: "Frankly, you have only got to just pick up your literature, go and look in the branch, have a look on the website and you will find that everything there is clear.”

So why, in the test case was there such an issue about the divergence of information offered on literature available in the branch (leaflets on charges) and the T&Cs issued by the banks…if only Angela had been at court to explain this apparent transparency of everything maybe the case might have been concluded there and then. Maybe the judge just wasn’t that gullible.

[Amethyst]

Re: The OFT, The BBA and The PCA

BBA Statement on OFT Market Study


16/07/2008


UK banks offer a wide range of products and services and are committed to providing their customers with high quality service and accounts to meet all their financial needs.


The retail banking market is open and competitive. Banks actively seek new customers - as any walk down the high street or search on the internet will show.


The OFT's market study contains many good points but some of its numbers are difficult to rationalise as they use assumptions and averages and, importantly, do not recognise the costs of providing the services.


Its own survey found high satisfaction rates particularly on service and value for money. Also 1 in 3 people keep a close watch for better deals. A recent study for BBC television's Watchdog programme found customers stayed with their bank because they were happy with the service and products they received and felt they would do no better elsewhere. It was not because they were either unaware of how to switch or because they felt it was too complicated. This is backed up by international research.


Banks are keen to ensure customers can continue to use their current accounts for day to day transactions without paying fees - as more than 4 out of 5 do now. In the UK customers do not pay a fee for their normal banking services and interest rates on savings accounts are high. This model is recognised as being one of the best in the world as elsewhere it is common to have to pay for using cash machines, direct debits and more.

Switiching is easy and accounts are fee-free if you stay in credit. If customers want to switch banks the new bank will do all the work - this includes transferring the account and changing all the direct debits and standing orders. Banks also offer a wide range of high interest deposit products so customers can earn good interest on their savings.

This does not mean banks are going to sit back. We will actively work with the OFT and our customers to continue to offer the best deals and services.

[Amethyst]

Re: The OFT, The BBA and The PCA

from PCA

• over 12.6 million accounts (23 per cent of active accounts) incurred at least one
insufficient funds charge in 2006

[Amethyst]

Re: The OFT, The BBA and The PCA

British Bankers Association chief executive Angela Knight insisted the market was ‘very competitive’ and dismissed the OFT’s £152 average annual charge figure as ‘contrived’.


‘It is slightly contrived, I thought, that figure, because elsewhere in the report they point out something that we've been saying time and time again and that is that 80 per cent of individuals don’t incur, for example, unarranged overdraft charges or any of those sort of things.


‘It is very important that this banking model, which is what it is that the individuals and customers have asked for, that is free to them for their normal banking arrangements does remain.

‘We are worried that the OFT seems to be challenging that,’ she told the BBC Radio 4 Today programme.

‘Frankly, you have only got to just pick up your literature, go and look in the branch, have a look on the website and you will find that everything there is clear.

‘Yes, you can incur charges if you do things without making arrangements first but do you really want to pay for ATM use, pay for statements, pay for direct debits in this country? Surely people don’t.

‘The Office of Fair Trading unfortunately does need to perhaps look at that balance as far as its report is concerned.’