Your Ideas Please . . .

[sensor]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

[sensor]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

[BankFodder]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

 

Firstly the charge must not only be fair but it must manifestly be seen to be fair.

The banks' problem is that their charges are very high and laso they are not prepared to discuss it or to be transparent.

If they are acting unlawfully - and we believe that they are - as do many others throughout the country then they need to start off by hauling themsleves into line and demonstrating that they are part of the community.

 

I hope that you gather from this that it is not only a question of the amount of the charge. The banks' behaviour has now raised many issues.

 

Why do you raise all of this? Are you from the banks?

[BankFodder]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

 

Firstly the charge must not only be fair but it must manifestly be seen to be fair.

The banks' problem is that their charges are very high and laso they are not prepared to discuss it or to be transparent.

If they are acting unlawfully - and we believe that they are - as do many others throughout the country then they need to start off by hauling themsleves into line and demonstrating that they are part of the community.

 

I hope that you gather from this that it is not only a question of the amount of the charge. The banks' behaviour has now raised many issues.

 

Why do you raise all of this? Are you from the banks?

[Bookworm]

Overdraft: You are already getting charged interest. The bank is making money out of using YOUR money when you're in credit, and is making money when you're using THEIR money. the more money you owe them, the more interest they're getting out of you, even without added charges. So, is it reasonable for them to charge you again if you go over the agreed limit? In that respect, I don't believe there is such a thing as a fair charge beyond the additional interest levied by the extra level of debt.

 

Returned d/d or cheque: There may be a case for a charge, although one could argue that with the amount of money we lend them, the cost could easily be swallowed in the running day-to-day costs. Do we really believe that it costs more to bounce a cheque than to process it?

 

Should banks charge at all? Frankly, no. We are forced to use them, they can use our money in any way they like, with very little for us to show for it. We are already paying for the service

 

What would be the point of a limit? Well, thats a different subject altogether, really. We live in a society which encourages us to spend spend spend, from the cradle to the grave (and beyond for those who believe ), and it takes a very special person not to give in to that wave from time to time. Or bad things happen to good people too. Whatever, sometimes, it needs someone with no connection to you to say stop, before you sink too far.

The point is, sometimes, we all need to borrow. For a house, for Christmas, for food... But we shouldn't be left in a situation where we will be dragged further down a debt spiral thanks to the very institutions we entrusted with our hard earned cash.

 

The banks should be allowed to make a profit, of course, they should! They do provide a service, and deserve to run smoothly and profitably.

But do they need to make those billions by overcharging? By sending people further into debt? To that, the answer must be NO.

 

Ramblings over.

 

xxx

ML

 

PS: In France, the banks have a duty of care. If you want to borrow extra, they have to carry out an assessment of your finances. If they lend you when it was clear that you couldn't aford the repayments or that it would leave you too small a margin to live on, if you then default, there is a commisionner who can then go over the bank and say: "Tough, you took the risk, you absorb the costs" and cancel the debt. Now, that's what I call responsible banking!

[Bookworm]

Overdraft: You are already getting charged interest. The bank is making money out of using YOUR money when you're in credit, and is making money when you're using THEIR money. the more money you owe them, the more interest they're getting out of you, even without added charges. So, is it reasonable for them to charge you again if you go over the agreed limit? In that respect, I don't believe there is such a thing as a fair charge beyond the additional interest levied by the extra level of debt.

 

Returned d/d or cheque: There may be a case for a charge, although one could argue that with the amount of money we lend them, the cost could easily be swallowed in the running day-to-day costs. Do we really believe that it costs more to bounce a cheque than to process it?

 

Should banks charge at all? Frankly, no. We are forced to use them, they can use our money in any way they like, with very little for us to show for it. We are already paying for the service

 

What would be the point of a limit? Well, thats a different subject altogether, really. We live in a society which encourages us to spend spend spend, from the cradle to the grave (and beyond for those who believe ), and it takes a very special person not to give in to that wave from time to time. Or bad things happen to good people too. Whatever, sometimes, it needs someone with no connection to you to say stop, before you sink too far.

The point is, sometimes, we all need to borrow. For a house, for Christmas, for food... But we shouldn't be left in a situation where we will be dragged further down a debt spiral thanks to the very institutions we entrusted with our hard earned cash.

 

The banks should be allowed to make a profit, of course, they should! They do provide a service, and deserve to run smoothly and profitably.

But do they need to make those billions by overcharging? By sending people further into debt? To that, the answer must be NO.

 

Ramblings over.

 

xxx

ML

 

PS: In France, the banks have a duty of care. If you want to borrow extra, they have to carry out an assessment of your finances. If they lend you when it was clear that you couldn't aford the repayments or that it would leave you too small a margin to live on, if you then default, there is a commisionner who can then go over the bank and say: "Tough, you took the risk, you absorb the costs" and cancel the debt. Now, that's what I call responsible banking!

[Guest stephen]

Yes, the bank should charge you if you breach the contract, however those charges should be for the actual cost they have incurred. However, the banks are currently implementing charges to make a profit. Sorry, but that is illegal.

 

Personally, I would be happy with a charge of up to a maximum of £5.00

 

As for them applying charge because there a risk of them not getting there money back. Well that simple to answer they do what we all have to do, which is take the person to court.

[Guest stephen]

Yes, the bank should charge you if you breach the contract, however those charges should be for the actual cost they have incurred. However, the banks are currently implementing charges to make a profit. Sorry, but that is illegal.

 

Personally, I would be happy with a charge of up to a maximum of £5.00

 

As for them applying charge because there a risk of them not getting there money back. Well that simple to answer they do what we all have to do, which is take the person to court.

[Seminole]

I believe that the American system regards bouncing a check as a criminal offence although the banks still charge for unpaid items.

[Seminole]

I believe that the American system regards bouncing a check as a criminal offence although the banks still charge for unpaid items.

[Guest stephen]

Dave your right in fact I know a person who was charge and convicted with fraud for doing just that,

[Guest stephen]

Dave your right in fact I know a person who was charge and convicted with fraud for doing just that,

[Bookworm]

Bookworm010363; can I just say...

 

Spot on! Exactly right in my book.

 

Especially the bit about the French banks. I wasn't aware of that, but my French bank has treated me with nothing but respect.

 

Well, thank you, dear Sir! Always nice to hear from the fans

 

xxx

ML

[Bookworm]

Bookworm010363; can I just say...

 

Spot on! Exactly right in my book.

 

Especially the bit about the French banks. I wasn't aware of that, but my French bank has treated me with nothing but respect.

 

Well, thank you, dear Sir! Always nice to hear from the fans

 

xxx

ML

[mtvessel]

What the banks decide to charge is their problem. What they should not be allowed to to is pretend banking is free. I run a business and charge people for my time etc. I don't pretend my services are free in the hope that my customers put a foot out of line so that I can levy punitive charges. If I tried this, I'd soon have no customers left. The banks get away with it because they are all members of a cartel.

[mtvessel]

What the banks decide to charge is their problem. What they should not be allowed to to is pretend banking is free. I run a business and charge people for my time etc. I don't pretend my services are free in the hope that my customers put a foot out of line so that I can levy punitive charges. If I tried this, I'd soon have no customers left. The banks get away with it because they are all members of a cartel.

[vix2000]

What I find mosy unfair is that the halifax charge £39 whether you go over by £5 or £500. I would think it would be more fair to be charged, say, 10% of the amount, eg. if I go over £5 I would pay 50p, £50 £5 etc. The same with dd's and so's. If I have £120 in my account and they pay a dd for £150 my charge would then be £3 instead of £39. I think this is fair compensation for the work involved in their being inconvenienced!!!!

[vix2000]

What I find mosy unfair is that the halifax charge £39 whether you go over by £5 or £500. I would think it would be more fair to be charged, say, 10% of the amount, eg. if I go over £5 I would pay 50p, £50 £5 etc. The same with dd's and so's. If I have £120 in my account and they pay a dd for £150 my charge would then be £3 instead of £39. I think this is fair compensation for the work involved in their being inconvenienced!!!!

[Bookworm]

I would think it would be more fair to be charged, say, 10% of the amount, eg. if I go over £5 I would pay 50p, £50 £5 etc. The same with dd's and so's. If I have £120 in my account and they pay a dd for £150 my charge would then be £3 instead of £39. I think this is fair compensation for the work involved in their being inconvenienced!!!!

 

But they already are! Don't forget that the penalty charge applied is ON TOP of the interest you are already paying day in, day out whenever you're overdrawn. And that's before we go into the "loan shark" rate of the over-the-limit, usually round the 30 %-mark. And all that is proportional to your borrowing.

 

And, if you really want to add to it, you're also paying for when you're in credit. How so? Well, look at the interest they're paying YOU when you're in credit, then compare it with the rate they're charging you when you're in debit. I just looked at my Halifax account: On a £200 overdraft, which is in and out of credit, interest debited: £2.47. Interest credited: £0.01 It would be laughable if it wasn't so irritating.

 

xxx

ML

[Bookworm]

I would think it would be more fair to be charged, say, 10% of the amount, eg. if I go over £5 I would pay 50p, £50 £5 etc. The same with dd's and so's. If I have £120 in my account and they pay a dd for £150 my charge would then be £3 instead of £39. I think this is fair compensation for the work involved in their being inconvenienced!!!!

 

But they already are! Don't forget that the penalty charge applied is ON TOP of the interest you are already paying day in, day out whenever you're overdrawn. And that's before we go into the "loan shark" rate of the over-the-limit, usually round the 30 %-mark. And all that is proportional to your borrowing.

 

And, if you really want to add to it, you're also paying for when you're in credit. How so? Well, look at the interest they're paying YOU when you're in credit, then compare it with the rate they're charging you when you're in debit. I just looked at my Halifax account: On a £200 overdraft, which is in and out of credit, interest debited: £2.47. Interest credited: £0.01 It would be laughable if it wasn't so irritating.

 

xxx

ML

[Bookworm]

In France, I think you only get 2 'lives' - bounce a cheque twice and you get banned from having a bank account for 10 years.

 

Not quite. (a bit OT, but just in case anyone is interested )

 

Your French bank must report a twice bounced cheque to the Banque de France (main banking body), which can then take away your chequebook from 1 week (1st offence) to 10 yrs. This will then make it difficult for you to open another account elsewhere, as the next bank will find out about your ban. Furthermore, even though things are changing, France still hasn't got that much to do with credit cards, and the loss of your chequebook can really cause problems.

 

xxx

ML

[Bookworm]

In France, I think you only get 2 'lives' - bounce a cheque twice and you get banned from having a bank account for 10 years.

 

Not quite. (a bit OT, but just in case anyone is interested )

 

Your French bank must report a twice bounced cheque to the Banque de France (main banking body), which can then take away your chequebook from 1 week (1st offence) to 10 yrs. This will then make it difficult for you to open another account elsewhere, as the next bank will find out about your ban. Furthermore, even though things are changing, France still hasn't got that much to do with credit cards, and the loss of your chequebook can really cause problems.

 

xxx

ML

[james141]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

 

In this day and age they have no excuse for "letting you" go over your limit IMHO other than to make money from charging you.

 

They could set their systems to say his overdraft is £100 so thats all he can have. but how would they make money from charges doing that!!!

[james141]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

 

In this day and age they have no excuse for "letting you" go over your limit IMHO other than to make money from charging you.

 

They could set their systems to say his overdraft is £100 so thats all he can have. but how would they make money from charges doing that!!!

[Seminole]

Hi,

 

i've spent quite some time now looking through the various posts on this site and am quite intrequed with peoples comments.

 

If i understand it, most people are un-happy with the level of bank charges.

 

My question to you you guys is, if you've agreed with the bank a £100 overdraft and you exceed this by £50, what would be a fair charge?

 

Also, how about a returned Direct Debit or an unpaid cheque? What would you class as a fair charge for this?

 

Should banks charge at all? If not, what would be the point of a limit?

 

I am interested to see what your thoughts are.

 

Thanks, and i look forward to reading your replies!

 

In this day and age they have no excuse for "letting you" go over your limit IMHO other than to make money from charging you.

 

They could set their systems to say his overdraft is £100 so thats all he can have. but how would they make money from charges doing that!!!

 

This is how the Coop actually operate their Cashminder account escept that there is no overdraft whatsoever. It proves it can be done but the only reason the Coop do it is because they think there's a high risk of not recovering any charges from someone who wants this account. When you think about it, that says a great deal about the thought processes banks go through when setting their charges high- the customer can afford it so make them pay.

 

I should add that the Coop only alloe a small number of free bounces before they close this account.