Build your perfect bank account.

[Amethyst]

Perfect world so you chose - how would you like your banking account to be structured?

How would you like to see the retail banking sector regulated ?

Would you be willing to pay a monthly fee - for what kind of benefits ?

How would you like your overdraft to be managed ?

What facilities would you like to have ?

Would you like to see any changes to the Direct Debit system ?

Looking for viable thoughts on models for Basic Accounts and Current Accounts. (ie. no nude bank staff and crates of lager)

[Birdie]

Re: Build your perfect bank account.

My first thought re facilities:

Somehow change the way the visa/delta/maestro/solo system works. We have a basic bank account with Natwest and are often penalised for having a basic bank account ie alot of places including some post offices do not accept payment via a Natwest Solo/Maestro card.

Birdie

[Curlyben]

Re: Build your perfect bank account.

I would like to see a return to the CUSTOMER focused approach we used to have.
Forget silly sales targets and the like and actually treat people like human beings and not a means to the next bonus.

Listening to what the customer really wants rather than what would improve the bottom line is what needs to happen, along with simplify products.
Do we really need 15 different bank accounts that only really offer the same service with a slightly different name and bank card ??

Sure if people want to pay a premium for a gold/platinum/black card then so be it, but stop tarting up what is basically a current account with meaningless offers and services.

Yes I have a gold LTSB account, why, mostly for the travel and car break down insurance, worked out better value, and the interest free O/D. Admittedly I'm seriously looking at the increased fees I'm being charged for little return.

Yes at the end of the day they are a business and they are meant to make money, but that does preclude personable service rather than time wasting "Account Reviews" AKA How Can I fleece Mr CB For More Money.

So that being said what would I like from my bank account.
I'm happy to pay a monthly fee for service that I might actually use, as mentioned above.
If I make a mistake I fully expect to have some charges levied, but they must be proportional to the transgression. So I exceed my O/D charge me what it costs, a couple of quid, but then I'd expect a reasonable interest rate for doing this, say upwards of 20%.
(So my £1.26 mistake doesn't end up costing £39 for 4 DAYS !!! (Thursday-Monday), more like sub £5, closer to what I cost the bank. Letter arrived on Saturday to tell me I was going to be charged, nice of them that.)

I'd better stop now as I could continue to rant all afternoon, and that's not really wanted here.

To sum up what I'd like is the bank to act in a reasonable and personable manner in their dealings with me.
Oh yeah and get rid of the off shore call monkeys

[TANZARELLI]

Re: Build your perfect bank account.

To echo what CB has said I wouldn't mind paying for charges if at a reasonable proportionate rate to the banks losses.

I want to only be able to spend what I have and not to be taken overdrawn by charges and interest. The bank should recognise the date my payments from BACS (Wages) are payed into my account and any charges and interest should be taken on this day and not when my balance is low due to it being near to the end of the month etc.

If a direct debit is returned and not paid to my creditor then they should inform me and I will make an arangement to either deposit more funds into the account or pay them via an alternative route. They should not be allowed to re-request this money on an often daily basis which causes me further expense and financial loss as this often contributes to the snowball effect which is utterly wrong and irresponsible.

I don't want gimmics and additions such as insurances not likely to cover me or ever pay out, I will source these myself if and when I choose to obtain them.

I want to be able to have a relationship with my bank manager who is not driven by sales targets as this effects his ability to provide a suitable level of customer service.

I don't mind a monthly fee if it is for a service which I have requested and is of use to me.

If I have an agreed overdraft limit then I expect it to be a limit.......end of story!!!!

I dont want hidden charges.

I want T&C's and other account info in PIL.

I want a customer charter from my bank which is relevant to me and is in PIL.

I want regulators to do what they are supposed to be doing and who are totally independant.

I want the FOS to deal with complaints within a massively reduced length of time.

I could go on.

[scoobydoo]

Re: Build your perfect bank account.

I would prefer if a DD was not paid and just a letter with a small charge for telling me that fact.

I think the idea that when you are close to OD limit you could receive a text or email is good . As sometimes you may be able to transfer funds from elsewhere.

If you do have financial problems and you have contacted the bank you should have a dedicated person that you can deal with all the way through . And all correspondence should be recorded. In this day and age you should also be able to contact them by email.

When discussing serious financial problems phone calls should be avoided unless requested by the customer.

The banking code should be a regulation - not just voluntary.

The licence holder with whom you are opening an account with should be clear. (so you can avoid mortgage and savings/current account with the same bank if you so wish)

[enaid]

Re: Build your perfect bank account.

Well loads of super ideas there, I do think a financial health check every 6 months or so is a good idea. By that I mean go in and have a real honest chat about your account and I mean honest, on both sides.
The checks they do now are usually sales based and that is out of order IMO.

[scottishlass]

Re: Build your perfect bank account.

I don't mind paying a small fee if they pay a DD if there is not enough funds to cover it, as you are effectively borrowing from the bank, what I hate is when say you are maybe short a couple of pounds they don't pay DD you are charged £35.00 then £25.00 for being over your overdraft limit even when you don't have an overdraft in the first place.


I hope that makes sense

[Amethyst]

Re: Build your perfect bank account.

Ideas thus far:

1: Charges to be proportional and fair
2: Higher interest rate on unauthorised borrowing for JUST the unauthorised amount, not the entire overdraft.
3: Better customer service and care – less sales driven approaches to consumer contact
4: Overdraft Limit should be a limit not a guide – if a DD/SO would take it over then it is not paid
5: Documentation to be in Plain Intelligible Language and easily accessible
6: Independent regulation – with guidance from a consumer panel
7: Trigger limits - ie if a % of DD's/SO's not getting paid over a time period assistance is offered
8: Alternative charging dates to fit with salary/income to account
9: Banking code regulated
10: Parent/Sister companies made clearer on documentation
11: Financial Health checks to identify problems annually
12: Enable DD's to be HELD rather than cancelled and reset up.
13: Allow monthly repayment plan of overdrafts PRIOR to default situation


Keep going hopefully we can get a long list and fine tune it later.

[righty]

Re: Build your perfect bank account.

I realize it's the question we all need answering & it's doubtful the banks will ever provide an answer (at least not an honest one) I think before commenting we need to ask "what is the purpose of levying penalty (now known euphemistically as service) charges when a customer goes overdrawn"

Is it meant to punishthe feckless or is it meant to encourage prudence..... or is it meant to cover the cost of rejection.

If it's the above then I would prefer not to be punished by my bank. If I want to trash my credit rating that's my business. If the bank want to withdraw my account then that's their business.

What I don't want is my banker saying we aren't going to help in fact we are going to make it worse

I would like to see a truly basic account with DD facility & no OD facility not even one for the bank to add charges

In theory there's nothing wrong with DD it's just that the users fail to abide by the existing rules & if they did consumers would be less disillusioned by the whole setup

[Sapphire]

Re: Build your perfect bank account.

A bank that actually has enough staff working at the 'windows' so I don't have to stand there for nearly an hour just to do a transaction. It amazes me that at lunchtime when the banks are likely to be at their busiest the allow their staff to bugger off as well, instead of making sure that the 'core' busiest time it staffed at full level. (Shame on you Abbey and Lloyds)

A bank that when you want to discuss your personal business, lets you go into a private room instead of keeping you sitting outside for all and sundry to see/hear what you are discussing, and when you ask to go in a private room you are told 'ooo sorry thats for people that have pre-booked the room', well forgive me for not knowing that I had to do it. (Abbey again)

A bank that when you have been in there over 3 hours doing business (my mums probate, property, accounts and such like) and you are bursting for the loo, doesn't send you across town to use the loo's in the middle of the market place, and then have to return to carry on dealing with the business in hand. (Abbey again).

A bank manager who is easy to get in contact with instead of having to join the search for Lord Lucan, we used to have a decent relationship with our old manager but he moved to a different branch. (Lloyds business)

Well I hope you can pull something from those Ame, and sorry for the mini rant.

[Amethyst]

Re: Build your perfect bank account.

14: Loo's in Banks and/or supply of Tena Lady



Think all those points come back to decent Customer Service...something distinctly lacking.



Customer Service Team of the Year 2008- Financial Services Winner: NatWest


pmsl

[Budgie]

Re: Build your perfect bank account.

OK, I will add my two pennies worth.

Taking into account the debacle of recent years and the ongoing attempts by the Banks to avoid legal curtailment of their unlawful activities it is obvious that drastic action needs to be taken.

If the Banks are divorced from control of their default charging aspects are seperated then banking would truly become a utility service so I would like to see the following :-

Central regulation of all Banks by a newly created independant regulatory body comprised of nominated Members of the Banks, the Government and Consumer groups and funded jointly by the Banks and the Government. This new body should have far reaching powers covering all aspects of the Banking industry.

Most importantly, standardised regulation for all default charging aspects. The maximum level of charge that any Bank may charge for default situations should be set, amended, monitored and controlled by this new regulatory body and each Bank would be forced to adopt and use identical terms and conditions in respect of default charging aspects, these terms and conditions to be written, amended, issued and administered by this regulatory body.

Banks would be free to issue their own individual terms and conditions for all other aspects of the personal account business but personal current accounts would need to be de-linked totally from any other financial service offered by any individual bank. Banks would be able to set their own interest rates for authorised and unauthorised overdrafts and may also set their own monthly or annual account service charge levels. These aspects will then be naturally controlled by free competiton between Banks.

Basically all the other problems mentioned so far could and probably would be solved via this fundamental change in the power base of the UK Banking Industry.

The OFT wishes to see greater competiton and freedom of switching, these concerns would be solved by the removal of Banks powers to set their own dafault conditions and charges. Greater competiton would naturally follow if the above proposals were adopted and ease of switching accounts would be something that the regulatory body could facilitate via regulation if necessary.

[TANZARELLI]

Re: Build your perfect bank account.

Also I would wish to see Credit Unions grow as they are controlled by their membership. If, as some are now doing, they all had better current account facilities ie the ability to set up DD and SO facilities then there would not be a need for mainsteam banks and competition would be increased. The common bond needs to be removed (which I beleive is on the cards) making them more accessible to new members.

They don't have charges, the lend responsibly, they offer debt advice, they want to help you, they don't push you to purchase things from the as they are not sales driven.

There should be one in every high street.

[righty]

Re: Build your perfect bank account.

My views entirely Tanz & some of the larger CU's are starting to offer all the facilities of a bank.

Whilst I consider this a good move I do hope they don't lose sight of the mission in life just as the Building Societies have over the years & certainly since becoming banks

Budgie why should there be charges for NOT paying a DD we all know it costs now't & surely if you agree to charges the one who has any possible right to charge is the receiver who hasn't been paid not the bank who's simply refused

[Budgie]

Re: Build your perfect bank account.

Budgie why should there be charges for NOT paying a DD we all know it costs now't & surely if you agree to charges the one who has any possible right to charge is the receiver who hasn't been paid not the bank who's simply refused

Contrary to what you say it doesn't cost nowt to refuse payment of a direct debit payment when there are insufficient funds in someone's account.

There are costs associated with refusing a payment just as there are costs associated with saying yes and actually processing the transaction. In fact there are probably additional costs involved in saying no especially if the Bank send out a letter to the Customer advising them of the refusal or provide other services following on from this situation. The problem, as everyone knows, is that is that the Banks have been using this default charge scenario to vastly overcharge Customers and make huge profits as a result.

Not everyone is happy with just a basic type of personal bank account such as those offered by the Credit Unions or Think Bank etc etc. I think that these types of Account are great though and work for people who want just a very simple account with no failed transaction charges and little or no monthly service fees.

However there are still some costs usually associated with using these types of account such as transaction charges or maybe ATM fees etc. So they are not always totally free. I admit that I haven't done a real lot of investigation regarding these types of accounts so if you have found a totally free to use one then please let me know!

However, where an account has a direct debit facility there will always be occasions where, either by accident, mistake or even through laziness of the account holder, direct debits will be presented for payment when there are insufficent funds. If you have one of these credit Union or basic bank accounts with direct debit facilities and pay no charges but do pay a monthly fee or some form of transaction fee then you are still actually paying the credit unions or Banks costs associated with the refusal of every singled failed direct debit anyway. If the credit Union or bank are not charging the individual whose account has the failed direct debit then it is obvious that these costs are being spread throughout the entire Customer base via the monthly service fees or transaction fees charge. Why, if you keep your account in good order should you have to pay a contribution to cover the costs of running the accounts of those who do not?

I think it would be far fairer to have a failed direct debit fee that is payable by the person on whose account the failure occurs. However this fee should of course only reflect the actual costs to the credit Union or Bank for that failed direct debit. The Banks have proven that they cannot be trusted to self regulate their own default charging regimes which is why I have suggested that at least that part of the banking business should be fully and independantly regulated and controlled.