Difficulty with avoiding excessive charges in the first place

[Guest DebtWeary]

There is one aspect of the whole subject of inflated bank charges that seems to add to things always working in the banks' favour, namely the difficulty in resolving or heading off charges in the first place, because it can be so damn hard to communicate with them!

 

I work with Lloyds and NatWest in both personal and business capacities and use online banking a lot. But try and find a single email address you can contact if you have a problem! Oh yes, you can phone and try to explain. But if you do that, more often than not, especially with business accounts, the business manager is unavailable, or whoever you speak to doesn't have any authority to do anything helpful either. It's far easier to explain in writing if you find yourself in a situation where you are likely to incur charges, and those who DO have authority can use their discretion and waive charges - IF you get the opportunity to explain your situation to them.

 

When you are struggling to keep a small business afloat, there are inevitably times when you come unstuck with the financial juggling act - someone doesn't pay when expected, heavy pressure from creditors - and it is at such times you can incur charges.

 

SO, get an authorised overdraft I hear you say. Nice if you can - I've had a business account for 6 years and NEVER have I been allowed even a measly £50, to help avoid unauthorised charges; credit scoring killed it every time.

 

The bottom line is that banks make a fortune out of customers who default in some way, and they seem intent on keeping it that way.

 

Long gone are the days when you could pop in for a friendly chat with your bank manager. Banks would no doubt protest vehemently that they offer a personal service and are always there to help. Well, yes I HAVE had some bank staff that truly wanted to help but no sooner than you've established a good working relationship, they reorganise the system and you have to start all over again. For example, with Lloyds I have had 4 different business managers in as many years, because they keep trying to "improve" their customer support system.

 

I would consider any bank charges to be fair if the SERVICE was there and they did everything that they COULD do to help you avoid charges in the first place. But clearly by making it so difficult for you to resolve issues, they don't want that. Much easier to make outrageous charges for doing nothing!

[magictorch1976]

Here here ! My intention was to come home tonight and write exactly the same thing. Anne "whatsherface" (surname escapes me now) of the BBA apparently pointed out today that consumers can avoid charges by putting overdraft facilities into place first. What a joke! As you say, easy if you can get an overdraft but especially now with the criteria much tighter than 5 years ago, this is easier said than done.

 

I bank with Barclays and am into an unauthorised overdraft every month because of charges but they won't give me an overdraft facility until I have run my account in credit for at least 3 months yet they won't break the cycle by not charging me. Anne "whatsherface" of the BBA needs to look at the wider picture before making such sweeping statements.

[magictorch1976]

Anne Whatsherface = Angela Knight....... sorry !!

[Guest DebtWeary]

Yes just been watching her on Sky News. They don't give a toss about us really!

 

Same thing happened to me re charges making my account overdrawn. The stupidest thing that happened was that I had a Cash Card blocked (not a Debit Card) the only use of which was to draw cash from an ATM. I tried to get a balance and the card was swallowed. What is the point of blocking a Cash Card?? You can't draw any cash if there's none there anyway so you can't make your account overdrawn! Aargh! They did give it back - eventually.

 

I can remember a time, not so very long ago, when the bank would actually get in touch with you and ASK you if they could help, should a potentially chargeable event seem likely to happen, for example, if a cheque was presented when funds were insufficient to cover it (that has also happened because charges swallowed up money that would have covered the cheque!)

 

Sky News right now is basically burying it all - saying it's the end of the line. They keep replaying Lord Philips pronouncement on it, which to me makes no sense at all. He was basically saying that the OFT has no right to question whether charges that form part of the arrangement between customer and the banks are fair or not. Hello? Office of FAIR Trading?? What else are they there for, for god's sake?

 

If a test of fairness is whether the cost of the service matches the work, expertise, etc. involved in providing the service (which in the case of overdraft and other charges must be 1% of b&^**r all), then I'd say the OFT has EVERY right to continue to harrass the banks (not just banks, they should take a look at all Mortgage Lenders too).

 

But getting back to my original point, not only is it difficult to avoid incurring charges because of difficulties in contacting the right people at the banks in real time by means of email, but there also seems to be a fairly recent trend in no longer providing a breakdown of how charges that are levied break down. Lloyds used to send me an analysis. I must check on online banking to see if such exists there - I doubt it.

 

I heard the £2.6 billion was made by banks in 2006 through these charges. We are led to believe that the banking crisis of the last year was on account of banks lending to people who should not have been lent to. If that is so, then these "bad" customers must have made them a small fortune in interest, late payment, returned cheques, returned direct debit etc. etc charges. What did they do with all that money??