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It has been suggested that Banks now operate more a utility type service/facility and should bill customers for the service they use each month, much in the way your electricity company/telephone company do - by billing you.
So basically; you have a free if in credit type bank account, during the month you might purchase a variety of services by using your account - this could be 'instant overdraft requests', or a 'packaged account'
The bank, much as an electric company does, bills you for the services you have used that month, and give you the standard 30 days to pay, by a method of your choice, on a date of your choice.
So rather than the bank helping themselves to your money, they bill you for the service provided. If the service was crap you argue, if theres anomonlies you argue, if its right you pay it, - as you can afford to (like any bill).
Basically it gives you back your first right of appropriation over your money without having to beg.
Yes people could pay the bill by DD, a fixed average amount or the entire charges, on a suitable date (like just after payday) so it needn't be less convenient for those occassional fee incurrers. It would enable people to know exactly where they stand and budget and would be more obvious to the bank where there are problems forming. Could pay by bill payment from their account, debit card etc etc.
Plus any problems with charges on the bank account don't sprial off out of control as the charges are standalone for a specific service and can't incur further charges or stop you paying another bill because of them.
What do you reckon ? (my explanation is probably poop)
(Od debit interest and credit interest would still operate on the account as normal we're simply talking about additional 'fees for a service or package of services'.)
The ONLY reason banks give for not doing it like this is as the BBA have stated '' Because the bank manages your account, it has the ability to make a debit from that account in payment for services it has provided to you. This is quicker and more efficient than having to send you an invoice.''
So basically; you have a free if in credit type bank account, during the month you might purchase a variety of services by using your account - this could be 'instant overdraft requests', or a 'packaged account'
The bank, much as an electric company does, bills you for the services you have used that month, and give you the standard 30 days to pay, by a method of your choice, on a date of your choice.
So rather than the bank helping themselves to your money, they bill you for the service provided. If the service was crap you argue, if theres anomonlies you argue, if its right you pay it, - as you can afford to (like any bill).
Basically it gives you back your first right of appropriation over your money without having to beg.
Yes people could pay the bill by DD, a fixed average amount or the entire charges, on a suitable date (like just after payday) so it needn't be less convenient for those occassional fee incurrers. It would enable people to know exactly where they stand and budget and would be more obvious to the bank where there are problems forming. Could pay by bill payment from their account, debit card etc etc.
Plus any problems with charges on the bank account don't sprial off out of control as the charges are standalone for a specific service and can't incur further charges or stop you paying another bill because of them.
What do you reckon ? (my explanation is probably poop)
(Od debit interest and credit interest would still operate on the account as normal we're simply talking about additional 'fees for a service or package of services'.)
The ONLY reason banks give for not doing it like this is as the BBA have stated '' Because the bank manages your account, it has the ability to make a debit from that account in payment for services it has provided to you. This is quicker and more efficient than having to send you an invoice.''
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