Just In...OFT wins

[Alf W]

How can charges be 'unfair' if they have been clearly, mutually agreed in a written contract (which is what an application form is)? I'm going to be p155ed off if I have to start paying for my banking just because of a few irresponsible idiots who can't keep track of their bank balance.

The odd slip up here and there happens and whenever it's happened to me and triggered a charge, a quick call to the bank has led to the charge being cancelled. It's only those who repeat offend that get charged for what seem like ridiculous offences.

I bet a lot of people claiming charges back previously used to fill their time up making dodgy Claims Direct claims against councils for uneven paving slabs.

Compensation culture scroungers.

[SandyDown]

From what I understand, some banks have been charging astronomical charges for things that only costs them very little .. e.g. cheque bounced.. so they charge customer £30, while in fact bouncing the cheque only costs them 30p.

On top of the £30 flat charge fee, they'd charge the customer daily interest.. so by the time the customer got notified with the charges, and can afford to pay it, the bank would charge them an extra daily interest on the penalty... therefore they'll also end up paying an extra £10 or £20 interest on top of the £30 flat charges.... so most people would think that customer having to pay the bank £50 charges for something that cost them 30 is a bit of a rip off.. don't you think??

btw: figures above are just an example... but I once was over my limit by £10, the bank kept charging more and more daily interests.. some how before I knew it I had to pay them around £70... yes its my stupid mistake.. but heck the bank made £60 out of my ignorance or being too busy to notice their charges.. needless to say when I realised what happened I walked straight to the branch and demanded to close my account now and then!! Banks count on customers being too busy, or forgetful, and rip them off

[SandyDown]

Isn't it Basel II? There is a project on at CFS on this.

Basel is a town in Switzerland where all the Investment banks credit risks regulations come from.. there was Basel I and now Basel II is almost there (implemented) heard there may be Basel III
Basel and MiFID are only for investment bansk and MiFiD applys mortgage supplies too.

There are no such regulations for retail banks yet... but what i hear is the FSA is going to adopt the banking code of practice soon(well its adopting it at the moment, but not officially)

[NotAllThere]

Basel is a city. At least by Swiss scales. The third largest after Zürich and Geneva.

[lilelvis2000]

How can charges be 'unfair' if they have been clearly, mutually agreed in a written contract (which is what an application form is)? I'm going to be p155ed off if I have to start paying for my banking just because of a few irresponsible idiots who can't keep track of their bank balance.

Well according to the judge these terms may be considered unfair under the unfair T&C in consumer contracts act. But I'm sure the banks will be appealing right to the Lords on each case which the OFT brings forward.

I have no sympathys for the banks I'm afraid. Their profits are in the £B whilst the entire retail system is designed for poor people to incur charges.

If you're a low wage earner and for some reason your salary is delayed by a day or two - you get hammered with fees. you've done nothing wrong. This has happened to me...Its worse if there is a bank holiday in the middle.

Things would be better if - like other countries - transfers were actually done on the same day! I imagine people would incur less fees. The banks seem to be dragging their feet on this..as they earn £M off the markets by delaying transfers.

That said I do own banking stock, and do enjoy the divis - however I am not a greedy person (you should see my rate).

[Jog On]

However, sadly I think nothing is going to be detemined yet, I know most banks have been preparing for an appeal already, so expect the case to drag in the courts for ever!!

Just read it could be dragged out a good few years yet if they decide to appeal:

http://www.fool.co.uk/news/your-mone...oowftxt0010011

They'll make up for it by raising loan rates and mortgage rates. People just scraping by will have to get by with a no-frills account. No debit card, no cheque book, no charges.

I have a no-frills account with a debit/visa electron card - it's great, no overdraft no stress. I can buy things online, use direct debits etc - no problems.

How can charges be 'unfair' if they have been clearly, mutually agreed in a written contract (which is what an application form is)? I'm going to be p155ed off if I have to start paying for my banking just because of a few irresponsible idiots who can't keep track of their bank balance.

The odd slip up here and there happens and whenever it's happened to me and triggered a charge, a quick call to the bank has led to the charge being cancelled. It's only those who repeat offend that get charged for what seem like ridiculous offences.

I bet a lot of people claiming charges back previously used to fill their time up making dodgy Claims Direct claims against councils for uneven paving slabs.

Compensation culture scroungers.

While I do agree with some of what you say it’s not quite that simple.

When I was at rock bottom most of the trouble I had was that the charges and interest kept taking me over and incurring more charges and interest with a snowball effect. There are a lot of people out there who’s situations are considerably worse than they should be because of this snowball effect.

When you’re living at the very edge of your means but trying to claw your way out it can be very stressful and frustrating when the charges and interest are keeping you where you are and in some cases plunging you further into the red. I remember phoning up my bank and pleading with them for some leeway just to give me a chance to get back on top of things and them saying “no, no and no”, they knew exactly what was going on but all they cared about was how much they were raking in from me regardless of the fact there was no way I could afford it and the lack of sleep and stress it was causing me.

Well now I’ll rake it back – all of it, and put it onto my 0% credit card balance

Maybe this will be the end of free banking but they will still have to compete for our business somehow. There is also the fact that the so called ‘free banking’ was subsidised by excessive charges.

Charging someone £60 for a £10 mistake is disgusting – especially when that person is deep in debt and trying to get out.

They are just paying for their greed now, just like the sub-prime mortgage lenders and Northern Rock etc are – oh hang on.. we’re paying for that aren’t we

[lilelvis2000]

They are just paying for their greed now, just like the sub-prime mortgage lenders and Northern Rock etc are – oh hang on.. we’re paying for that aren’t we

Yes. perhaps every person with a mountain of debt. or business like my wife's with a large amount of bad debt should ask for their slice of £50B.

Must be nice...when times are good they shower it all over themselves...when its bad they tulip on us.

[Bagpuss]

How can charges be 'unfair' if they have been clearly, mutually agreed in a written contract (which is what an application form is)? I'm going to be p155ed off if I have to start paying for my banking just because of a few irresponsible idiots who can't keep track of their bank balance.

The odd slip up here and there happens and whenever it's happened to me and triggered a charge, a quick call to the bank has led to the charge being cancelled. It's only those who repeat offend that get charged for what seem like ridiculous offences.

I bet a lot of people claiming charges back previously used to fill their time up making dodgy Claims Direct claims against councils for uneven paving slabs.

Compensation culture scroungers.

Couldn't agree more, I have been charged by my bank once in 20 years of banking, and due to a good record a quick phone call resulted in it being cancelled. Those claiming 100s of pounds of charges are the same sort of people declaring themselves bancrupt after wasting £1000s on personal loans. Typical of today's society (as also demonstrated by the sub prime fiasco) those with a bit of sense and fortitude are now expected to pay for feckless morons.

[oracleslave]

Couldn't agree more, I have been charged by my bank once in 20 years of banking, and due to a good record a quick phone call resulted in it being cancelled. Those claiming 100s of pounds of charges are the same sort of people declaring themselves bancrupt after wasting £1000s on personal loans. Typical of today's society (as also demonstrated by the sub prime fiasco) those with a bit of sense and fortitude are now expected to pay for flipless morons.

Boo f... hoo. You poor whining victim. Get a grip.

[Bagpuss]

Boo f... hoo. You poor whining victim. Get a grip.

Do you believe others should pay for those who can't manage their finances?