http://news.bbc.co.uk/1/hi/business/8425766.stm

On the plus side it means banking will stay free for me and I don't have to start paying because people couldn't handle their finances.

I know what you mean (I'm in the same position by the sound of it), but I'm not even sure I buy that claim from the banks either, not if this is anywhere near true:



The bank just shouldn't be relying on charges as a third of their profits for tactical business reasons, if nothing else

Contrary to the blurb they put in T&Cs banks love it when people go overdrawn/miss payments. It's free money and pure profit to them, and at a brilliantly extortionate rate too.

I also don't like the idea of overdraft charges keeping banking free, firstly I refute that suggestion (do you have any idea how much the banks make just off the money in your current account?), and secondly the idea of the poorest people in the country subsidising banking (through unfair charges) for people who are better off makes me sick.

They make F*** all from me, my money is elsewhere making money, it gets transferred in when I need it for bills etc. other than that there is a nominal amount for petty cash when needed.

The poorest people subsidising banking is because they have poor financial control, it's up to them to manage their money properly. If you can't do that and consistently go overdrawn and incurring fees... well you need to manage your money better.

People need education, they won't accept it, but they do.

Some banks are quite lenient, some won't charge if you went overdrawn if a payment clears it the next day etc.

I'd rather have idiots getting fined keeping my bank afloat than having to pay monthly for my account.

Like you my banking is subsidised by the charges; I'm not so quick to condemn though, loads of people have lost their jobs recently and the cost of living is so high in this country that it'd take no time at all to go into the red.

What would annoy me is that if I lost my job I'd be forced to spend the money I've saved for a house deposit before I got any dole, but if I'd spent the money on booze I'd get benefits straight away.

this is not over, just yet, there is a a section of the consumer credit act to be tested for this outrage by the banks
and no i do not have any bank charges that are required to be tested in court or awaiting repayment

just for interest does anyone remember or know why this was started
it makes very interesting reading and you would fight as well

from small acorns great oaks do grow …

It's not over anyhoo, HMG are looking at introducing new legislation.

+1
+1

Having working in a bank for many years ( on the front line not unfortunately as an investment banker) I know how bad many people are with their money.

I cant remember the number of times I have sat down with people who had lost their jobs in the last recession with the conversation going something like this

Me –“OK you have lost your jobs – you need to cut back a bit... lets look at your standing orders – hmm no need for sky”

Customer- “Oh no I need full sky & sports package”

Me - ” No need to replace you phone and get a new contract – go PAYG”

Customer – “Oh no I must have the latest XXX phone on a 2 year contract”

And so it would go on

So while I understand genuine hardship lots of people are not willing to compromise their standard of living and then wonder why banks start bouncing payments (and so incur charges)

Surely banks should only be able to charge you for electronic payments if they actually pay the transaction.

what utter tosh! Unless your money is stashed under the matress or in some bullion in the cupboard, your money will be in the system being used to make money for the bank. With you getting a pittance after they have taken there cut.
Sooner or later the banks will bring us into line and charge people for havng an account, just like in the rest of Europe.

It could be in a local credit union.

Which is where mine will be after Chrimbo

The problem is, we all need bank accounts nowadays. Once upon a time people would be paid cash in hand, rent would be paid in cash, bills would be paid in cash etc...Now you can't get paid in cash and all my letting agents have wanted direct debits set up, with the likes of British Gas, NPower, Orange, Tiscali, etc preferring direct debits over anything else.

Once upon a time if you ran out of money it meant your wallet was empty, now it means that your wallet has a hole in the bottom where the bank has extended it without asking. If I have run out of money, don't let anyone take anymore out! I'll deal with my landlord asking why the rent hasn't come yet or British Gas asking why I've not paid for my electricity. If I have no more left don't let me take money out of the cash machine or buy something from the supermarket, tell the cashier "No, this person has no money left!"
What if everything is on direct debits and working nicely, but one month your workplace screws up the payments, could you lawfully pass the charges to them?

I think it's easier to see what you have in your hand, thus it's easier to manage your money. Checking your account takes time (OK, around 3 minutes from my internet connection or a similar amount of time if I'm first at a cash machine) and people will try to remember how much they've got, and occasionally fail.

If the banks carry on doing this, fair enough. But £25 for every withdrawal (HSBC) seems excessive...

So it's you who hold me up at the cashpoint.