Bank Charges

[Himse]

But surely he had a responsibilty to look after his details don't you think?

Of course he does, but he got owned by a fake cash machine, it's not like he left all his bank statements unshredded in the mail.

Well obviously we will see when the court case is over.

 

[Rubric]

Oh and apparently 40% of us don't share you good like financial management abilities

GMTV - It's been revealed that four out of ten of us rely on credit

 

[Mey]

Rubric you talk shit, end of the story. We are not talking about people using credit, we are talking about people using unauthorised "credit" (theft if u ask me).

With most banks offering internet banking and the masses of cash machines around these days, it's pretty hard not to realise if you are over your agreed limit. It is simply poor money management, not the banks fault, the customers fault.

As for the charges causing more charges, no they don't. If you are charged for going over your agreed limit and the charge takes you over your limit once again the bank(s) do not charge for this.

From your posts I imagine you read the "newsreporting" in the Sun..

 

[Huntingtons]

but if the bank dont want people to do overdrafts why make it possible for them to do so?

 

[Mey]

but if the bank dont want people to do overdrafts why make it possible for them to do so?

The reason why Lloyds Tsb offers/allows (as far as I am aware) unauthorised overdrafts is imagine you are in tescos with a full load of shopping and you're card gets declined, you would feel pretty stupid/embrassed.

You people all see it from the point of the view that the bank does it for money, wrong. The "profits" made from bank charges are tiny compared to the money the bank makes on the money markets and from big lending deals with corporate company.. Personal banking accounts for hardly any of the banks profits (relative).

 

[Rubric]

Rubric you talk shit, end of the story. We are not talking about people using credit, we are talking about people using unauthorised "credit" (theft if u ask me).

With most banks offering internet banking and the masses of cash machines around these days, it's pretty hard not to realise if you are over your agreed limit. It is simply poor money management, not the banks fault, the customers fault.

As for the charges causing more charges, no they don't. If you are charged for going over your agreed limit and the charge takes you over your limit once again the bank(s) do not charge for this.

From your posts I imagine you read the "newsreporting" in the Sun..

Like i said to Himse the world is not black and white and one day when you are older you might realise this.

And no my posts come from the 10 years experience i had working for HSBC. Some banks do and some banks don't charge on charges. If someone can show me a case where someone has succesfully claimed compensation and not just had their charges returned to them then i will quite happily eat my hat as they say.

I will however still think you are an a.) class A twat or b.) child

 

[Rubric]

The reason why Lloyds Tsb offers/allows (as far as I am aware) unauthorised overdrafts is imagine you are in tescos with a full load of shopping and you're card gets declined, you would feel pretty stupid/embrassed.

You people all see it from the point of the view that the bank does it for money, wrong. The "profits" made from bank charges are tiny compared to the money the bank makes on the money markets and from big lending deals with corporate company.. Personal banking accounts for hardly any of the banks profits (relative).

Lloyds TSB are one bank who definately used to charge on charges taken you overdrawn. They racked up £600 to someone i know just by doing that.

Bank charges account for around £10 million pounds a day of income for banks. The banks themselves openly admit they will start other charges if they cannot continue with this.

 

[Corran]

The reason why Lloyds Tsb offers/allows (as far as I am aware) unauthorised overdrafts is imagine you are in tescos with a full load of shopping and you're card gets declined, you would feel pretty stupid/embrassed.

You people all see it from the point of the view that the bank does it for money, wrong. The "profits" made from bank charges are tiny compared to the money the bank makes on the money markets and from big lending deals with corporate company.. Personal banking accounts for hardly any of the banks profits (relative).

If the banks dont do it for money then why have they turned round and said "If we get told we can no longer make these charges then we will have to look at charging people for banking with us and there will be no more 'free' banking"?

It makes them money, some of it is stupid (ie you dont have enough money to pay a DD. They bounce it back. Charge you £30. That puts you into an overdraft. They charge you anover £30). Royal bank of scotland done that to my partner and it werent bad money management. Changed insurance companies, cancelled the old insurance, cancelled the direct debit, old insurance company tried to take £800 for no reason. Overdrawn. Charged. on same day 5 more DD came out. £150 in charges. Queue roll on charges till finanlly the bank froze future charges and after a long battle with the insurance company got them to pay it all else the bank would have made the charges stand.

If they werent in it for money then they would have dropped the charges or sought them directly from the insurance company attempting to steal money (well you class unauthorised OD as stealing so this clearly must have been)

 

[Roalith]

You have £10 in your account - let's say you drunkenly took £20 out the night before to pay for a cab home because you were too pissed, or some such.

A £30 direct debit comes in for whatever.

Bank turns around and says "Oh no, we can't pay that, you don't have enough money."

Fair enough.

Bank then says "Because we sent you a letter telling you we can't pay something, we're going to charge you £39."

Bank then says "Because we're sending you £29 into the red for a penalty charge, we're going to charge you another £39 for an unauthorised overdraft."

You're left just under £70 in debt for a charge the bank couldn't pay.

Now, say for example you forgot that charge was due to come out, and don't check the account.

By the time you receive the bank's initial letters, the direct debit will have been resubmitted at least once - maybe even twice, incurring another £39 in each instance.

How the fuck is that fair?

 

[Raven]

At the end of the day it makes me laugh, people are blaming the banks, but not the retards who can't manage their own money...

People aren't blaming the banks they are just annoyed by the stupidly high charges, yes people should be punished for going overdrawn (if they don't have an over draft arranged) but some of the figures the banks charge don't help anyone.

Its called responsible lending, all financial institutions have a duty of care to their customers, it doesn't help the customer to keep heaping on crippling debts when there is no way they can pay them off.

Some people live in the real world where sometimes they do slip up, miscalculate, spend to much, whatever.

 

[Shagrat]

Its not about overdrafts, its about being overdrawn......

It's easy for it to happen. 1 month, a company took a direct debit out three times by accident, taking me £31.20 overdrawn. I got a letter charging me £76 for this (2 x £38).

So now I'm £108 down, then another directdebit I had queued up behind this one for £10 (which would have gone through normally) bounced as well, another £38, so instead of being £20 I was about £150 down. And the banks are crap about helping people sort this kind of thing out so Im glad its now come back to haunt them..

Being overdrawn is an account holders fault yes, but banks charging £40 is a piss take as well, its just punishing those who live on or near the line (as I did at the time).

 

[Mey]

Lloyds TSB are one bank who definately used to charge on charges taken you overdrawn. They racked up £600 to someone i know just by doing that.

I'm sorry but that's bullshit. I can't remeber one single case in my mind where the bank (lloyds tsb) has charged on an excess caused by a charge.

 

[Rubric]

Thank the lord the adults have arrived in the thread.

 

[Himse]

Since when at any point in this thread were we "wrong"? Were only making a point that unless you have an overdraft arranged, you shouldn't go overdrawn, yeah the charges are megahigh but if you overdraw you are taking the banks money.

You expect not to be fined for that or?

It's less than a speeding ticket & your stealing money effectively. Some people don't know when to stop either.

"Being overdrawn is an account holders fault yes, but banks charging £40 is a piss take as well, its just punishing those who live on or near the line (as I did at the time)."

Yeah thats all im saying, the charges are high, but it's in a way the fault of the account owner.
Personally i couldn't care if there were charges or not, but i don't think its fair that the banks should lose money.
You wouldn't like it if you owned a shop, and someone come in to take money out of your till everyday.

 

[Mey]

Thank the lord the adults have arrived in the thread.

I work, I rent a house, I pay bills, I pay tax, I pay a Tv Licence. If I can manage at the age of 20, why can't an "adult"?

Maybe if you didn't miscalculate so much you wouldn't of gone bankrupt?

 

[Raven]

20, wow, quite the life experience i see. I just hope life doesn't throw a spanner in the works for you, a simple clerical error by someone in a bank can cause you to incur charges, As someone said above, it does happen now and again that a direct debit can be processed twice, or processed at a higher amount that is due, or maybe a bill will come by that you weren't expecting and think you can cover but can't. Life tends to throw a spanner in the works now and again, as they say, shit happens.

Anyway, I don't feel sorry for the banks, its their own fault for being greedy. There is no way they can justify a £30 fine for someone going a couple of quid overdrawn. Most of the processing is done in Poland or by minimum wage drop outs these days anyway so they do make a massive profit from it. By no means what they make from corporate banking or loans, shares etc but its still a huge sum of money.

Self owned.

 

[Litmus]

Lloyds TSB are one bank who definately used to charge on charges taken you overdrawn. They racked up £600 to someone i know just by doing that.

Bank charges account for around £10 million pounds a day of income for banks. The banks themselves openly admit they will start other charges if they cannot continue with this.

That happened to my mate, he didnt realise his work fucked up and didnt pay him. Then went to the pub after work. Each time he bought a drink on his card he got a £30 fine for being over drawn. So by the end of the afternoon he was about £150 from that alone... then all his direct debits came out too.

 

[Rubric]

That happened to my mate, he didnt realise his work fucked up and didnt pay him. Then went to the pub after work. Each time he bought a drink on his card he got a £30 fine for being over drawn. So by the end of the afternoon he was about £150 from that alone... then all his direct debits came out too.

And that is the banks fault. They should have had his card declined. Why didn't they? Because they wanted the money.

 

[Rubric]

I'm sorry but that's bullshit. I can't remeber one single case in my mind where the bank (lloyds tsb) has charged on an excess caused by a charge.

Well i can.

 

[Rubric]

I work, I rent a house, I pay bills, I pay tax, I pay a Tv Licence. If I can manage at the age of 20, why can't an "adult"?

Maybe if you didn't miscalculate so much you wouldn't of gone bankrupt?

Well done, as did i at 20.

However as has been said when you have realy experienced real life i hope you don't find yourself in a situation where you are living hand to mouth.

 

[Mey]

However as has been said when you have realy experienced real life i hope you don't find yourself in a situation where you are living hand to mouth.

So to clarify, at which point in my life will I start experiencing real life?

20, wow, quite the life experience i see. I just hope life doesn't throw a spanner in the works for you, a simple clerical error by someone in a bank can cause you to incur charges, As someone said above, it does happen now and again that a direct debit can be processed twice, or processed at a higher amount that is due, or maybe a bill will come by that you weren't expecting and think you can cover but can't. Life tends to throw a spanner in the works now and again, as they say, shit happens.

If it's a clerical error why don't you go to the bank and ask them to look into it.

Spanner in the works - sorted, the great thing about being able to manage your own money correctly is you account for these spanners with a wonderful thing called savings.

 

[Mey]

Well i can.

Word of mouth is such a reliable source! But I mean because you've experinced real life then what you say must be true, despite the fact that I view thousands of different accounts every year..

 

[Hawkwind]

I once got charged 30 GBP for going 8 pence overdrawn due to the bank themselves fucking up when they lost a months salary. I eventually proved, with the companies help, that the money had been paid in correctly and it was simply a clerical error on their part. It still took letters to the onwardsman and banks senior management before they finally relented and refunded the charges which ended up at over 200 GBP due to them continuing to charge for every outgoing Standing Order or Direct Debit even after they admitted it was their fault.

UK bank charges are some of the highest in the world and that is why they came under the scrutiny of the EU. The people of 'Rip off Britain' are finally getting something back from membership of the EU.

 

[Raven]

If it's a clerical error why don't you go to the bank and ask them to look into it.

Spanner in the works - sorted, the great thing about being able to manage your own money correctly is you account for these spanners with a wonderful thing called savings.

A savings account wont make a blind bit of difference if someone tries to take to much money from your current account. If its a clerical error by someone other than your bank, more often than not the charges stand.

I am sorry but no matter how much you dress it up the charges have been excessive and counterproductive, all they do is make banks extra profit.

 

[soze]

I have a £250 interest Free Overdraft and unlike a few of my friends i do not view that £250 as my money. A few mates spend the wages plus the £250 so they always live on the edge. I use it as a buffer zone and i have been into it a few times an extra tank of petrol a new tyre ect but because i always have the whole £250 i have never needed to go over it and been charged so far.

The banks take the piss big time but people can and should manage money better and not let the bank take the piss. I know its not black and white things spring up that surprise you but these people that let it happen every month are doing something wrong.

 

[Rubric]

Word of mouth is such a reliable source! But I mean because you've experinced real life then what you say must be true, despite the fact that I view thousands of different accounts every year..

It's not word of mouth, it happened to my wife.

 

[Jeros]

I'm sorry but that's bullshit. I can't remeber one single case in my mind where the bank (lloyds tsb) has charged on an excess caused by a charge.

Have you been living under a rock?

They certainty have done me

I think its great that the banks are being taken to court of banking charges, if there not in the wrong then why did they both say that they were in the right WHILE refunding peoples charges, thats like saying that car accident was not my fault but im gonna pay for it anyway

 

[Bahumat]

Originally I heard (could be wrong) that the people who were overdrawn and being charged for letters etc, had to backlog all the incidents to accumilate the £2,000.

Himse leads me to believe a woman went 90p overdrawn, got charged about £50, then claimed £2000 back....Surely he is wrong and I am correct?

 

[Rubric]

I have a £250 interest Free Overdraft and unlike a few of my friends i do not view that £250 as my money. A few mates spend the wages plus the £250 so they always live on the edge. I use it as a buffer zone and i have been into it a few times an extra tank of petrol a new tyre ect but because i always have the whole £250 i have never needed to go over it and been charged so far.

The banks take the piss big time but people can and should manage money better and not let the bank take the piss. I know its not black and white things spring up that surprise you but these people that let it happen every month are doing something wrong.

Agreed,

This thread has gone off on a bit of a tangent.

What i am trying to say is that some of the £10 million a day banks make from this practice is by preying on people who live on the edge through no fault of their own.

At the end of the day this case is saying that the charges are unreasonable. Nobody can argue that charging £30+ for bouncing a £10 direct debit when there is £9 in your account is justifiable. Saying that people are stealing by going overdrawn is just plain ignorant.

All that people have been able to claim is reimbursment of the charges and interest they have incured nobody is making money out of these claims.

The bank i worked for used to let you take money out of a cashpoint when there was none in your account, sometimes up to £50 now why do they do this. The only reason can be so that they can raise charges. granted you shouldn't withdraw it but why do they let it happen?

I understand that when you shop at somewhere like Tesco's your debit card balance is not actually checked up to a certain limit to speed up transactions in a busy environment, but when your using your debit card in a small shop why do they not block your card if you don't have enough money? A logical conclusion is so that they can raise charges.

If you are young, no kids with a good wage or 2 wages coming into a household i absolutely agree that people should be able to manage their money, however that does not mean that the scale of the charges is fair. And for those with serious responsibilities who are not on the best of wages or even on benefits no matter how you work the figures out sometimes there is just not enough to go around.

 

[Bahumat]

I think if you always have a little money left at the end of the month, an overdraft is fine. I decided my overdraft SHOULD NOT be more than what I earn. I had to use the overdraft before christmas because I wanted a new pc. I knew that for the next 2 months I'd have to stop buying dvd's, cd's, games etc.

if I'm overdrawn it's paid off every month by my wages, I may need to go back into the overdraft, but not as much as the previous month.