Bank Charges

[Rubric]

Rubric when we were talking about a loan being the best option i didn't think we were talking about a few hundred quid of debt. In that case, i'd never suggest a loan as being the best option, reduction in the overdraft (as you say is clearly a better option).

When it comes to 1000's of pounds a Loan really is the best way of being able to manage it.

No it's not. Freezing interest and agreeing affordable repayments based on the customer income and expenditure decleration is the best way of managing it.

And going back to the small amounts. How many times have you or anyone in your bank done as the CAB suggested and opened basic account and frozen interest and charges to stop the customer getting in a worse situation?

 

[Mey]

How is a loan not the best option, a loan is a fixed interest rate, and they are agreed repayments. If the loan is used to pay of all the other debt, that means the person has only one single bill to pay rather however many they had previous, this is usually at a much lower interest rate than what they already were paying (with some credit cards being as much as 30%).

 

[Rubric]

How is a loan not the best option, a loan is a fixed interest rate, and they are agreed repayments. If the loan is used to pay of all the other debt, that means the person has only one single bill to pay rather however many they had previous, this is usually at a much lower interest rate than what they already were paying (with some credit cards being as much as 30%).

Its not the best option because the best option for the customer is freezing interest and agreeing affordable repayments based on the customers income and expenditure decleration.

The loan is the banks way of continuing to make money. It's not in anyway shape or form about helping the customer. And if you really believe it is then i pity you.
People who take consolidation loans are mad, i should know i had a few in my time before i ended up in the situation i did.

 

[Mey]

Do you even know what interest is?

Interest is a fee paid on borrowed money to compenstate the lender for not having that money, why then should a bank (a lender) freeze someones interest when they will make a loss in doing so?

Consolidation loans if managed correctly are a perfect way to get youreself out of debt, if you are having trouble in dealing with it.

 

[soze]

I have been overdrawn once in my life. (Out of my agreed overdraft) When i took too much out of the bank thinking i got paid again before the Standing Order went out. I was overdrawn by £47 and my branch called me to let me know they said they could have rejected the bill but they honoured it so i should get a charge. I told them i though it should go out the day after when i was paid and they agreed not to charge me. Then set me up a free over draft.

If it is a one off you call and speak to your bank manager they will more than likely rip it up don't forget the computer applys the charges ect not a human. So you let them know it was a exceptional situation they will help you. Unless you have a exceptional situation every month.

I think £39 is too much maybe £5 admin and then interest on the money you have borrowed will be a fair way to do it.

 

[Roalith]

Not all banks in the uk are online or real time.

At any point did I say they were?

Just pointing out an example of what the UK's banks could certainly be aiming for, if they want to provide the great service they're always harping on about.

Doesn't even necessarily need to be between ALL UK banks. Even just the top 10 (which will almost certainly be both online and/or real time, and if not should be!) could enter into an agreement to provide this level of service.

But nope, they'd rather earn even more profit by skimming the interest on money invested during the 'clearance' time.

To be fair I'd probably do the same, at the end of the day.

Still: Original Post
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This doesn't have any bearing on the fact that the current bank charging system is neither fair nor lawful.

 

[Rubric]

Do you even know what interest is?

Interest is a fee paid on borrowed money to compenstate the lender for not having that money, why then should a bank (a lender) freeze someones interest when they will make a loss in doing so?

Consolidation loans if managed correctly are a perfect way to get youreself out of debt, if you are having trouble in dealing with it.

Any debt counsellor in his right mind would not recomend a consolidation loan. I am talking about the best way to help the customer out of a difficult situation and the best way of doing that is by freezing interest and charges and agreeing an affordable repayment plan based on the customers income and expenditure. If you took someone to court for an outstanding overdraft or loan this is what the court would do in the end anyway. If banks helped their customers rather than exploited them they would make more money out of them in the long run though return business.

 

[Rubric]

This doesn't have any bearing on the fact that the current bank charging system is neither fair nor lawful.

QFT

 

[Iceforge]

Oh my god, I am glad my bank is nothing like this. I mean, I once found out I had gone into 100 quid overdrawn, by my own fault, and called the bank and they was just like "Oh, yeah, well, how about we just expand your allowed overdrawn with 600 quid for 3 months until you get up above it again so you dont have to worry about that?" No charges, nothing. I still have to pay for having loaned money through, I think 12.5% pr. year (due to it being usually a deposit and not a loan account), but no instant credits, so when I got like 10 quid overdrawn for a week, it is like nothing it costs me.

 

[Himse]

I don't understand why people are moaning when they don't even have an arranged overdraft.

If you think you can take the banks money its a silly idea, of course you're going to get fined or whatever.

Personally the banks should just send a letter like Lloyds did to my friend being like, your xx amount overdrawn, you can either pay us the money back or we will close your account. Rather than charging him money.

 

[Himse]

QFT

Why is it unfair in any way?

Explain to me, why you think you have the right to take the banks money without their permission.

If you have an arranged overdraft its fair enough.

 

[Amildin]

Why is it unfair in any way?

Explain to me, why you think you have the right to take the banks money without their permission.

If you have an arranged overdraft its fair enough.

Cos they have lots and i dont have much

Sharing is fun!

 

[Rubric]

Why is it unfair in any way?

Explain to me, why you think you have the right to take the banks money without their permission.

If you have an arranged overdraft its fair enough.

It's not an intentional thing on most peoples behalf.

The figures quoted are banks are leveying charges of £10 million pounds a day. At an average charge of £30 a day that is in excess of 330,000 instances a day where someone has gone into the red with their bank or the bank bouncing a dd, that over 1.5 million cases a week. How do people get these charges? Well it is down to people going over their agreed overdraft limit or a direct debit or cheque bouncing. The way i see it is if you don't have the money in your account the bank should not let you use your card at the cashpoint or in a shop however they do. If there is not enough money in your bank to cover a direct debit then the bank of course should not pay the dd out. But to charge £30 for dealing with that is unfair. Charging them a further £30 when the charge takes them further overdrawn is unfair. It does not cost them £30 to deal with any of these issues, they are not lawfully allowed to make a profit from this but they do. This is what i see as unfair.

 

[Himse]

It's not an intentional thing on most peoples behalf.

The figures quoted are banks are leveying charges of £10 million pounds a day. At an average charge of £30 a day that is in excess of 330,000 instances a day where someone has gone into the red with their bank or the bank bouncing a dd, that over 1.5 million cases a week. How do people get these charges? Well it is down to people going over their agreed overdraft limit or a direct debit or cheque bouncing. The way i see it is if you don't have the money in your account the bank should not let you use your card at the cashpoint or in a shop however they do. If there is not enough money in your bank to cover a direct debit then the bank of course should not pay the dd out. But to charge £30 for dealing with that is unfair. Charging them a further £30 when the charge takes them further overdrawn is unfair. It does not cost them £30 to deal with any of these issues, they are not lawfully allowed to make a profit from this but they do. This is what i see as unfair.

I see your point, but all it takes is to go into the bank and say don't let me or anyone take any money out of this account unless its above xx amount, they can do that sort of thing, also you can ask them for a small overdraft if its needed, people just need to get off their ass and sort it out, cos i can probably guess that alot of people get charged more than once.

I agree charging £30 is a bit extreme, it is their job afterall to look after your accounts and your money.

 

[Jeros]

I think we can all agree that if the charges are deemed illegal the banks are going to have the merry hell fined out of them.

This is gonna be interesting

 

[soze]

It's not an intentional thing on most peoples behalf.

The figures quoted are banks are leveying charges of £10 million pounds a day. At an average charge of £30 a day that is in excess of 330,000 instances a day where someone has gone into the red with their bank or the bank bouncing a dd, that over 1.5 million cases a week. How do people get these charges? Well it is down to people going over their agreed overdraft limit or a direct debit or cheque bouncing. The way i see it is if you don't have the money in your account the bank should not let you use your card at the cashpoint or in a shop however they do. If there is not enough money in your bank to cover a direct debit then the bank of course should not pay the dd out. But to charge £30 for dealing with that is unfair. Charging them a further £30 when the charge takes them further overdrawn is unfair. It does not cost them £30 to deal with any of these issues, they are not lawfully allowed to make a profit from this but they do. This is what i see as unfair.

For you to have £3000 form of these charges you have to slip into the red 300 days that is not something that just jumps up thats constant so yeah its the persons fault. Again i agree £30 is too much but people who moan about the bank but go into the red month after month instead of aranging a larger overdraft are wrong too.

 

[Rubric]

I see your point, but all it takes is to go into the bank and say don't let me or anyone take any money out of this account unless its above xx amount, they can do that sort of thing, also you can ask them for a small overdraft if its needed, people just need to get off their ass and sort it out, cos i can probably guess that alot of people get charged more than once.

I agree charging £30 is a bit extreme, it is their job afterall to look after your accounts and your money.

Agreed but when people are in financial difficulty the majority bury their head in the sand. These people are stupid for doing so but may not be stupid people. They probably do not have a credit rating that will support getting an overdraft. The pressure of finances leads to lots of other pressures in a persons life making it all seem too much. The banks make as much money as possible out of people going through the burying their head in the sand phase.

 

[Rubric]

For you to have £3000 form of these charges you have to slip into the red 300 days that is not something that just jumps up thats constant so yeah its the persons fault. Again i agree £30 is too much but people who moan about the bank but go into the red month after month instead of aranging a larger overdraft are wrong too.

People can go back 6 years and claim interest so this accounts for some of the large figures. I have seen instances where one bounced dd has actually led to £90 worth of charges. This then leads to knock on charges when you can't physically bring your account back into a credit balance due to lack of funds. When you live close to the line this is not something you can easily recover from. One of the criteria for banks giving a customer an overdraft or increasing it is them managing their account well for a period of time say 3 months. If your going in after having incurred charges from a simple budgeting mistake you can be turned down for an overdraft or increase and there is no way out from the downward spiral.

Don't get me wrong some people have a blatant disregard for money management and infact i used to be one of these people. I am not defending that. In an ideal world it would be black and white but the reality is it just isn't.

I now only use cash and save up for the things i want. I pay all my bills at the post office. It's a bit of a pain but i have complete control and the banks don't make a penny off me as all my cash is withdrawn on payday.

 

[Rubric]

For anyone who does find themselves in financial difficulty i would like to take the time to recomend a free charity run service that can be found here National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000 or freephone on 0808 8084000. And of course your local CAB if they have a qualified debt counsellor.

Steer clear of consolidation loans and debt management companies, these people are the only ones who have your best interests at heart and all the facts.

 

[Mey]

If it does go tit's up, i'll be waving goodbye too my 4 years worth of share saving

Due to the huge amount of money that will probably have to be paid out in a very short amount of time.

 

[Rubric]

If it does go tit's up, i'll be waving goodbye too my 4 years worth of share saving

Due to the huge amount of money that will probably have to be paid out in a very short amount of time.

I think it will be settled by ascertaining what the actual costs involved are and a return of the difference to customers but with some kind of time limit on old charges, so the hit won't be as big as it could be, but yes bank shareprices are going to take a bit of a tumble.

In some ways it could be a good thing for you. If when it comes to the time to buy the shares from the money you have been saving and the prices are low they will recover and you will make massive amounts of money.

 

[Mey]

True, i'll be keeping my shares till i'm in my 30's anyway, so its no biggy lol.

 

[Rubric]

True, i'll be keeping my shares till i'm in my 30's anyway, so its no biggy lol.

Just be glad you don't work at northern rock and have a sharesave with them

 

[Mey]

Having shares with the rock could be a good thing though, espically if a take over was likely to occur (which isn't an impossible, possibility.)

 

[Rubric]

Having shares with the rock could be a good thing though, espically if a take over was likely to occur (which isn't an impossible, possibility.)

Or it could be a really bad thing if nationalised.

 

[Corran]

Having shares with the rock could be a good thing though, espically if a take over was likely to occur (which isn't an impossible, possibility.)

If there was a takeover the price would be below the value the majority paid for their shares. If something isnt sorted inside 2months then shareholders are fucked and will actually get next to nothing, if not nothing due to government stepping in. And to be honest when the government got about £55billion of taxpayers money on the line (the loan + the deposits they said they will honour) then I hope they do so.

It is quite interesting that when the christmas savings company went down the tube the government didnt care, when it was this they are happy to make sure everyone gets their money. But then I am not surprised!

 

[Pfy]

For anyone who does find themselves in financial difficulty i would like to take the time to recomend a free charity run service that can be found here National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000 or freephone on 0808 8084000. And of course your local CAB if they have a qualified debt counsellor.

Steer clear of consolidation loans and debt management companies, these people are the only ones who have your best interests at heart and all the facts.

Agreed. Consolidation loans are bad news. Looks great on paper, less out going a month but when ou realise you're then paying for an extra 2 - 3 years it really is worth struggling to get rid of the debt asap with out taking on more.

IVA's etc (IVA - Individual Voluntary Arrangement: IVA Help and Advice) are just fucking terrbile. All these companies advertise it as free money, but it's not, it's ridiculous that they're able to get away with it.

 

[tierk]

When i was a lot younger (17), i got into huge financial problems with NatWest bank and ended up owing them over 8 grand in overdrafts and CC's. I never once said that i wouldnt repay the money and kept offering to repay at a rate i could afford.

We eventually ended up in court where the court agreed that i should repay the bank. As i had gone back to college by the time they got me to court the court asked that i pay five pound a month until either the loans were repayed (would have been the year 2200 me thinks ) or i got a job and could repay the bank, which i duly did (three years later).

My advice is, never ever say to the bank "fuck off i will not pay this money off." Make them an offer to repay, whatever you can afford at the time i offered them a pound a week, which they refused and took me to court.

The courts are very understanding of people in difficult situations (financial ones) and will generally give very easy terms of repayment, which is why banks send out a billion letters pressuring you to make some sort of plan of repayment (on their terms which is invariably much higher then you can afford) hoping that they never actually end up in court.

If all else fails just go to your doctor and tell him you are depressed and thinking about suicide because of all your money problems and they will send letters to the debt holders atelling them to layoff till you feeling better (a mate working in the post office pulled this one and got off repaying over 22 grand run on CC's).

Whatever you do dont let it get to you all people at some point in there lives hit financial problems and its no biggie a job will always sort it out in the long run.

 

[Himse]

When i was a lot younger (17), i got into huge financial problems with NatWest bank and ended up owing them over 8 grand in overdrafts and CC's. I never once said that i wouldnt repay the money and kept offering to repay at a rate i could afford.

We eventually ended up in court where the court agreed that i should repay the bank. As i had gone back to college by the time they got me to court the court asked that i pay five pound a month until either the loans were repayed (would have been the year 2200 me thinks ) or i got a job and could repay the bank, which i duly did (three years later).

My advice is, never ever say to the bank "fuck off i will not pay this money off." Make them an offer to repay, whatever you can afford at the time i offered them a pound a week, which they refused and took me to court.

The courts are very understanding of people in difficult situations (financial ones) and will generally give very easy terms of repayment, which is why banks send out a billion letters pressuring you to make some sort of plan of repayment (on their terms which is invariably much higher then you can afford) hoping that they never actually end up in court.

If all else fails just go to your doctor and tell him you are depressed and thinking about suicide because of all your money problems and they will send letters to the debt holders atelling them to layoff till you feeling better (a mate working in the post office pulled this one and got off repaying over 22 grand run on CC's).

Whatever you do dont let it get to you all people at some point in there lives hit financial problems and its no biggie a job will always sort it out in the long run.

8 grand?!

wtf did you buy?

 

[Pfy]