Bank Charges - A suggestion

[jshtr3]

From what I've read about it, it seems you can write to the bank and tell them to leave your benefit money alone (not take charges from it). I really aren't an expert but I think if you include a breakdown of your costs Rent, food, bills, council tax etc. they HAVE to leave that amount of money alone and let you draw it out on a specified day. I'm sure one of the moderators or site helpers will have more of an idea if you send one of them a private message. Their names are in green and pink!

[Bookworm]

Thats interesting,but ive not heard of this or do i really understand what its about.Anyone care to explain it a little?

 

Nothing much to explain, it is that simple.

 

If you use that letter to tell the bank that x amount of your money is meant to be paying for this or that, and not for any other use, they can't then swallow it up in charges before you get your hands on it.

 

The drawback is that it has to be done every time that your money goes in, so if you get paid weekly, you have to do the letter weekly too. But considering that it could mean the difference between having access to your money and NOT having access to it, it's well worth the extra effort.

[Lonsi]

Ok thanks,seems a bit of hassle having to do that everyweek, but could be useful all the same.Sorry for hijacking the thread

[Meio]

Shame you don't have a facility to do the calculations and fire off the letter automatically.

 

Maybe there's a buisness opportunity there, kind of a meta-banking facility... for a charge of a few quid a month our computers will allow you to create a budget and ensure you never get shafted by the banks. Or maybe one of the 'ethical' banks could provide these facilities as part of their online banking services.

[JOSH_IOU]

Obviously as I am posting here it is clear that I work for a bank.

 

I have a suggestion to assist everyone in avoiding bank charges.

 

Don't exceed your overdraft limit.

 

Or at least contact your bank before you do, there are things that we can do to prevent the charge... but not afterward.

 

 

anon guess what there are things i can do to get the charge back.

 

If you really want to prevent it don't charge me [EDIT].

[Mistermind]

Account holders do not object to bank charges.

They object to exhorbitant, unlawful charges.

 

Do banks own the law of the land?

[JOSH_IOU]

no

[JOSH_IOU]

It is clear from my "interview" with my bank manager that HSBC bank charges are there to fund the shareholders back pocket.

[noomill060]

Hi all,This is my first post .Like Scott i phoned my bank at first, to ask them to waiv one of three charges so i could get back on my feet and back in credit.I was told the charges are 'justified' so they wouldnt be refunding them.Ive now sent off a letter asking for a lot more charges back.Phoning seems to be a waste of time.

 

Id just like to add this,as far as getting wages paid in cash etc.People who are on benefits, now have to have a bank account to get their money paid to them and it is people on benefits/low incomes that are most at risk from excessive charges.Last month i had £200 in charges,i only get £392 p/m in benefit(my only source of income),thats more than half my monthly income in charges,tell me how im supposed to live?.Whilst i acknowlege i may have mismanaged my money,things are gonna snowball with more charges,more stress etc.I can fully understand why people HAVE committed suicide in the past,over financial difficulties.So to the guy that says "Dont go over your overdraft" try explaining that to those peoples families and children.

 

 

 

Well said scottie.

 

If you need a hand whipping shAbbey into shape, just give me a shout.

[Rhino69]

It would be simple to avoid exceding one's overdraft limit if the banks did not deliberately allow Chip & Pin Transactions or debit card transactions to be processed knowing that the customer does not have the funds in their account!

 

Account information is also misleading - When I have checked my balance at an ATM to determine my balance and then drawn out cash, leaving (As I believe) enough in my account for direct Debits, etc, I have then received letters (A week or more after charges have been applied) saying that there was not enough in my account!

I have received different sets of balances after checking the balance at an ATM, withdrawing a mini-statement as well as a full statement within minutes of each action.

 

The banks in my opinion deliberately mislead and give false information and in some cases deliberately hold back some debit payments thus forcing overspends to allow them to apply these unlawful charges.

 

A few years back, if one paid by debit or credit card and there was not enough in the account, the transaction would be denied.

I for one am not embarassed when I am told at a checkout that I don't have enough - I simply leave out a few items of shopping!

 

It's just another example of the bank's peremptory actions in grabbing as much as they can from their customers!

[Jase1982]

I should think that the person that initiated this post has obviously never been on a low income??

 

I get the same comments from people earning a lot more than me.

 

Bottom line is, I am not a financial expert and find it extremely difficult managing my funds, something which I believe needs to be addressed at education level.

[scott1985]

The idea of educating at a young age the importance of personal economics is something that should be addressed. Practically though, I don't think it would take off, there are just too many variables to take into account.

 

 

Plus with the way that the system works its not that simple to financially manage a minimum wage job. Especially in relation to where you live (South West, and London being the most expensive places to live).

 

 

Irrespective of someone's level of income, there are always going to be issues of financial management. The majority of the problems that fall through are the minimum wage against the cost of daily living .

[Gogivit]

In response to the original message on this thread!

 

PLEASE DO NOT ADVISE ME THAT WHEN I TAKE MONEY OUT OVER THE COUNTER THAT I AM IN CREDIT AND MY OUTGOINGS ARE CATERED FOR AND THEN 4 DAYS LATER SEND ME A LETTER STATING I AM OVER-DRAWN!

 

says it all don't it!

[Gogivit]

This Will Be Used In My Court Bundle ! :)

[dave]

In response to the original message on this thread!

 

PLEASE DO NOT ADVISE ME THAT WHEN I TAKE MONEY OUT OVER THE COUNTER THAT I AM IN CREDIT AND MY OUTGOINGS ARE CATERED FOR AND THEN 4 DAYS LATER SEND ME A LETTER STATING I AM OVER-DRAWN!

 

says it all don't it!

 

Understandably, people don't believe this (I do, I have had three differing balances given me on the same day by three different mechanisms).

 

I say, understanderbly, as it clearly shouldn't be the case - and for some reason, some people actually hold the banks in high esteem still and think that they wouldn't act this improperly.

 

Judges, I bet are looked after by banks, so they don't see the problems first hand.

 

It was this injustice that prompted Richard Colby to first air the issue in the Gruniad.

[Gogivit]

Thanks Dave for your comments.

 

Well I have now experienced this side of the banks operation!

 

When I brought the matter to the attention of the bank manager I received an opology for the supposed error and what they termed as oversight!

 

Yet to this day (weeks later) I can still visualise a strange look from the male bank clerk as I withdrew the money.

 

Anyone having been in same situation may know what I mean. It was a guilty expression or one of someone who felt they were making a secret commision!

 

But Hey!

 

Should go down well in my court bundle!

[dave]

Yep. My old man always used to say "It's about time these bloody banks were called to order" - and that was about 15 years ago - seems like his wish might just be coming true!

[jshtr3]

seems like his wish might just be coming true!

I wish I could agree with you, but whilst the current backlash may have made them sit up and take notice I can't see it having enough effect to make them change their policies. Unfortunately I think it is only when the government wants change that change happens. As these instutions contribute huge amounts to the economy I believe a way round the present situation will be found to ensure their profits. Seems to me that's the way it always been:(

[dave]

Maybe, but in less than a year, we've managed to get this issue in the papers/tv/radio pretty much every day - the courts are waterlogged with it, so is the FOS and the Information Commissioner - it's pressure from them that will make the difference - it's this way that the Govt. will be made to want change.

 

Keep this pressure up and in a year or two it'll make them more than take notice.

 

I can't see the Govt. taking any action directly though, as the banks will move their tax centre to somewhere else - which is not a good thing, for us, or them - and let's face it, this country is become an Us and Them society.

 

What needs to happen is what happened in 1926 - and I'm only half joking (thanks to BBQ beer!)

[Mistermind]

In Aus and USA there are internet-based organisations similar to CAG and MoneySavingExpert, with similar outrage at the extortionate level of penalty charges. In both Aus and USA the charge appears to average at ballpark figure £15 -- and they think that is high, ha ha ha.

 

The exemplary behaviour of Dublin banks in charging £3 appears to be the exception rather than the norm -- good boy Dublin.

 

In USA the organisation is the Consumer Federation of America. Perhaps grassroots movements across the globe could join hands and swap notes?

[jshtr3]

What needs to happen is what happened in 1926 - and I'm only half joking (thanks to BBQ beer!)

 

I assume you're reffering to the general strike. I'm up for it, well, untill the BBQ beer runs out anyway!!!

[Mistermind]

1926 ended with strikers returning to work with their tails between their legs.

 

In 1215 though, a result. Could do with a Penalty Charges Magna Carta.

[indebtstudent]

"some people actually hold the banks in high esteem still and think that they wouldn't act this improperly."

 

I could not agree more with this comment, a customer once said to me, no need to count the cash I'm sure it will be right (it was thousands) and he looked at me funny when I said we had to count it out...

[indebtstudent]

The whole system, it seems to me, is framed in such a way as to generate as many charges as possible. Try finding out what you will be charged and when if you have a couple of returned items, sometimes I struggle to find this out for customers and it is not on.

 

Also as other have said if you ask for the cash at the ATM and it says no there is no charge, what is the difference between this and a direct debit?

[dave]

Also, if there are DD's coming out on the same day, they are processed in order of largest first - this maximises the odds of the smaller ones bouncing and thus creating more charges.