The Banks Win...:(

[d000hg]

Good news. If you are going to go over agreed limits why should the bank pay. We've got a good free banking service here so hopefully we won't lose it now.

The point is why should they charge you £30 for going £1 overdrawn. I thought the banks were claiming the fees were actual costs they incurred which is clearly bunk - .01s of computer time and 30p to send a letter should cover it.

[Scary]

The result is that banks can continue charging high fees for customers who go overdrawn without authority to subsidise the cost of providing current accounts to other customers who stay in the black.

They make a loss on accounts in the black? Even after they lend out the cash (multiplied by many times) and charge interest on it (even as they pay little or no interest on the cash in current accounts)?

[Moscow Mule]

The point is why should they charge you £30 for going £1 overdrawn. I thought the banks were claiming the fees were actual costs they incurred which is clearly bunk - .01s of computer time and 30p to send a letter should cover it.

It costs more that 30p to send a letter - there's the cost of the human or machine employed to create the letter for a start.

Then there's the human who has to make a decision about the charge etc etc.

[EternalOptimist]

They make a loss on accounts in the black? Even after they lend out the cash (multiplied by many times) and charge interest on it (even as they pay little or no interest on the cash in current accounts)?

I did a contract at B@rcls, the application put a cost on transactions such as enquiries, also enquiries through the hole in the wall.

It is easy to see how an account in the black could lose money

[Scary]

I did a contract at B@rcls, the application put a cost on transactions such as enquiries, also enquiries through the hole in the wall.

It is easy to see how an account in the black could lose money

I'm surprised. If I keep a fairly small balance, say 1000GBP and they lend it out 10 times charging 10-30% interest, that's quite a lot of money coming in.

[BrilloPad]

Just noticed this on the BBC website.

http://news.bbc.co.uk/1/hi/business/8376906.stm

Not good news for some people I know. And Martin Lewis..
http://www.moneysavingexpert.com/new...m/2009/11/test

The banks always win.

[EternalOptimist]

I'm surprised. If I keep a fairly small balance, say 1000GBP and they lend it out 10 times charging 10-30% interest, that's quite a lot of money coming in.

maybe not if you had 30 receipted balance enquiries and four statements a month

[BoredBloke]

hey what happened to my humans rights?

[lilelvis2000]

It costs more that 30p to send a letter - there's the cost of the human or machine employed to create the letter for a start.

Then there's the human who has to make a decision about the charge etc etc.

I'm pretty sure there are no people making such a decision. Okay so it costs 35p then?

[swamp]

People should understand that the charges are normal, but if they want to dodge the charges they need to stay in credit. Simple.

Anyway most of the charge victims are students who just overuse the "beer token dispenser".