Bank Charges

[nedflanders]

http://news.bbc.co.uk/1/hi/business/6960358.st m

It's about time!, has anyone else claimed back their charges against the highstreet robbers?

What really annoys me is that whilst on one hand they are paying back people that claim back these over inflated charges, they still continue to charge people �30 to send out a letter! Why does the governement not step in to protect the public? The usual policy of protecting the capatilists I suppose. Any Opinions?

[WaldoMcFroog]

Well, there's the old school tie, too, Jake.

But it's rather strange that if we all have the same opportunities why such a low percentage of graduates by relative populations come from council estates. Are we to believe that people on council estates are disproportionately lazy?

Is this genetic or something?

Is this an evolutionary niche resulting from a lack of inter-breeding between the middle class/ artistocracy and council estate dwellers?

Can we do gene splicing to cure it?

[Loosehead]

Well fair enough jake, I didn't mean it literally when I said everyone has the same chance, I did indeed mean that it's possible to progress reagrdless of where you start, of course come are "more equal" than others. Yes my tution fees where paid and I had at the time �900 pa grant, that helped of course but I still needed to work, I believe also today those on benefits get their fees paid too. I accept that it is usually necessary these days to get some into some sort of debt, that can be planned for, what I'm really saying is that if you are getting hit by charges they you are breaking the agreement you had with the bank.

[Loosehead]

It's to do with the self perception of those families Waldo. I can remember enduring all sorts of opposition to my plans especially when I left a better job that most of my family had ever had to go and study. There is also a lot of general peer presssure and the fact that most of the families we talk about consider pregnancy + own flat as a career move.!

[cheries]

Ok, the grammar criticism was a low blow. I don't get involved in slanging matches so I apologise for that. But I am bewildered that you seem to think that it is proportionate and justifiable to charge so much money for a service which costs the bank so little. I'm not sure if there are any other comparable instances where the public are taken advantage of in such a way.

[Oneeyedvic]

"I'm not sure if there are any other comparable instances where the public are taken advantage of in such a way. "

Have you ever gone into a pub and asked for a coke when all your mates are drinking.

I got charged �2.00 for a pint of coke - it costs around 12p to the pub.

I don't see people calling on government asking for pubs to reduce the price fo soft drinks

[Loosehead]

where did I say it's "proportionate and justifiable"? I twice above said that the charges are OTT. They are effectively fines and do not reflect the true costs incured by the bank, I don't think anyone disputes that.

So are you saying that its not your own fault that these charges where incurred? You are not being "taken advantage of" you volunteer for these fines by your actions, I am bewildered that you cannot see that.

[cheries]

Yes Vic, you asked for a product and received it. I paid bank charges in line with my financial mistakes but the FSA seem to think that the charges are disproportionate. And so do I.
Would it be opening a whole new can of worms to suggest that students be given some relief from exessive charges whilst they are unable to work full-time? I was not eligible to receive a grant for my studies and had to do teaching practice for most of my degree, so it left me almost no time to work to support myself. I went over my overdraft and consequently paid the price. The debt spiralled and I ended up with a massive amount of charges. I was also expected to study in Norway for a yar as part of my degree and so was unable to work whilst there. Norway's a very expensive country so I got into debt. All I'm saying is that the bank didn't help matters.

[cheries]

Sorry, that was "year" not "yar". I'm not that posh lol!!

[Oneeyedvic]

Students already get a lot of benefits - eg Interest free / low interest overdrafts / credit cards. http://www.moneyextra.com/banking/studentaccou nts.html

as well as other incentives

[nedflanders]

The fact is the charges are not penalties, they are an administraion cost that actually costs �5 or so nett. They make around 600% profit for every charge they apply to their customers. The big 5 banks also make around �5+ billion a year profit. People cant take their money elsewhere so they have a monopoly/cartel.
Loosehead I am sure that if Tesco and their rivals applied the same mark ups to their milk you'd be up in arms.

[Oneeyedvic]

ned, if we are in a recession and the banks were losing money (like in the eighties) would it be okay then?

Are the charges acceptable depending on what the profits of the business are?

A restaurant will usually work on a 400% mark up - is this acceptable?

[cheries]

You can always choose not to dine at that kind of restaurant though Vic. The banks have a stranglehold over us as they all charge similar amounts and it is simply not practical to operate without a bank account anymore. No more hiding the wads under the mattress.
I agree with Ned, banks are just taking the p1ss.

[Loosehead]

but you can operate your account within the agreement, no charges, tada! that's really all I'm saying.

[dot.hawkes]

Not onloy have a claimed back banj charges for the last 6 years, i have claimed back late payment charges on my Dorothy perkins card, my barclaycard, my master card, all the arrangement fees for my 2 remortgages in the last 6 years, the charges on my mortgage for letters and the fees for exiting my mortgage, it was my money, they robbed me, i tool it back, for once I laughed all the way to the bank!

[Kam_voo]

I'd like to say the bank doesn't give monkeys
,to what happens
to your money all they really care about it what they get so don't expect them to care how much your losing you just have to play it tough and work your way back.......

[nedflanders]

Vic

There is a difference between profit and overhead. The banks profit is 600% (conservative figure)

The overhead is a computer operated response, it costs �2.50 to send the letter.

A restaurant's mark up is high because their overheads are high, mainly staffing costs 400% is the overhead cost not the profit! unless you are dining at a Gordon Ramsey eaterie.

[Oneeyedvic]

Whilst the cost of printing a letter maybe �2.50, that doesn't take into account the other overheads that a bank has - premises, software, staff etc.

As stated, the charges may be excessive - but then it is very simple - don't go overdrawn - ie live with in your means.

I mean - not paying things like dorothy perkins cards - hardly a necessity is it?

We have become a society of borrowers as well as a society that wants to blame others for what is our own fault.

There are very few people who go overdrawn as they are literally starving to death - most are (as in the above example) people who want to buy extra clothes and other 'luxuries'.

As for the banks having a monopoly - well that is true - but it is also true that they allow 'free' banking for all and sundry - unlike most other countries in the world.

Simple answer - bring back a debtors prison ;-)