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Bank charge controversy

Bank charge controversy

The OFT ruling gives consumers the green light to claim back bank charges such as overdraft fees. In the eyes of many, banks have been getting away with overcharging for years, others see them as vital if banking is to remain free (if you're in credit!).

"If you exceed your overdraft limit you breach your contract with the bank. The law says the penalty for this should not exceed the cost of the breach. The OFT said default charges higher than £12 were unacceptable in law as they were in effect a fine imposed by the banks."

What do you think of the banks, and what are your own experiences with charges?

Share your views below


What Do You Think?

Are you in favour of customers being able to claim back bank charges deemed to be unfair?






 
 

Comments

Added: 5 May 2008 19:27
John says:
In the same vein, Tiscali should refund Customer Support telephone charges incurred by customers when Tiscali get it wrong and customer has to use the 0871 number as their only method of contact.
Added: 2 May 2008 17:09
Lisa says:
And as far as the services from banks being free no they not, i pay £6.50a month for my internet banking,and other things thank you
Added: 2 May 2008 17:07
Lisa says:
To the bank staff person, i have four children and barclays bank charged me £30.00 for being over drawn by £4 because a direct debit came out a full week earlier than scheduled, do you know what they did they took it out of my child benefit. my kids money it's not right and while we on the subject the charges aren't even legal, they are over priced and Martin Lewis as shown the people exactly what the banks are doing yes have a charge fee on but come on £30.00 it's way too high a price to pay and especially when your on low paid jobs and have children to feed and clothe
Added: 26 April 2008 09:52
Michael says:
How typical Wils,
Of course the bank won't pay if you don't have the funds. The sheer amount of people I know who say the funds will be available beggars belief, if they pay yours with no collateral they charge others to cover potential losses. People need to control their costs as I find it hard to believe they don't know their income and outgoings and modify their spending accordingly. No I'm not rich!
Added: 25 April 2008 22:24
Wills,Wirral says:
I had the great joy of learning today that Barclays had refused to pay my mortgage although they had been made aware that funds were being submitted to cover the amount.Not only will they charge £35 for the letter, but they also charge an additional £35 for the cost of the automatic computer programme to stop the transaction.That's £70 worth of "cost" incurred, it must have taken all of 2 mins for the computer to print the letter and the human to pop it in an envelope. I wish I was on that hourly rate.I have decided to invoice Barclays for all my future correspondence, breaking down the cost of my time to compose the letter, cost of paper, ink, power, post, the cost of an invoice and as a final flourish put in a highly inflated hourly rate.
Added: 25 April 2008 22:08
Ray F says:
Andrew, how have the banks been helping these stupid people

Paul,In my case i had been with my bank for 25yrs without getting any charges, then i suffered a brain injury and could not work for 3yrs our income fell by 2 thirds, mortgage to pay kids to feed, just by going slightly overdrawn every month we had charges of £7000 which i won back, luckily my company held my job open for me, and i have been back at work for a year and have managed to clear all my debts, this could happen to anyone.
Added: 25 April 2008 22:02
Andrew Jeff says:
and another comment.. should the banks end free banking they will lose out. At the moment nearly 70% of all transactions in small businesses is done in cash - out of the banking system. Who in their right mind is going to pay a bank for holding onto money that they have effectively lent them - especially when the bank will immediately invest it in the stock market and make even more. Get real banks. A Jeff B.A.(econ)
Added: 25 April 2008 21:52
Andrew Jeff says:
This is the latest example of modern life encouraging people to know their rights and not take their adult responsibilities seriously. Once you reach the age of 18 you are an adult; you should read the terms and conditions of any contract before you sign it. If you don't and stretch yourself beyond your capabilities (i.e. spend what you can't afford and overstate your cash flow position)you should pay the penalty. I have live on half pay since my kidney transplant - and I have never been overdrawn in my life. Why - quite simply because I was brought up to manage my money properly. If you can't afford it - buy it 2nd hand. It makes my blood boil to see stupid people being helped whilst the rest of us act responsibly...
Added: 25 April 2008 21:09
Paul says:
Ray F, the 'less-well off' you speak of are usually those with fairly good incomes, who are incapable of managing their finances and expect their debts to be socialised onto the rest of us through paying bank account fees. Free banking should remain for all those who are fiscally prudent and keep their accounts in credit Those who are spendthrift, running up huge debts, deserve to get stung by the banks. They should learn to read the terms and conditions of their accounts.
Added: 25 April 2008 21:08
Jackie says:
I have never been overdrawn or due a charge to the bank in my 26 years of banking with RBS and they have treated me well. I appreciate some people go through difficulties and mayb e can't meet a payment on the odd occasion but this should not be th enorm andif it is I agree with some kind of penalty being enforced but some charges due appear inappropriate. Why do the banks not reward good bankers with an incentive other than free banking, this may encourage others not to default etc.

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