bank charges

[White House Workshop]

I'm not bragging and I do appreciate that some people have been screwed by their banks, but I was just wondering if there is anyone else around like me who hasn't paid a penny in bank charges in over 30 years - to my knowledge, and probably not for a long time before that, too? That's not to say I haven't switched banks in that time. The last time a bank tried to charge me was (I think) in 1975 and I simply wrote them a letter saying they could keep their account as it was their fault they incurred the charge. Never heard a word from them. That account showed a slight negative balance (<£5) when I walked away from it.

In the US I have an account with my local credit union. All they ask to maintain a free cheque account is that I must keep a minimum of $5 (five dollars) in a savings account. Pretty good. Before that I was with Bank of America and for their free account I had to keep $10,000 of total assets with them - but that included my pension account, too, so although it sounds a lot it was really easy as I couldn't touch the pension cash anyway! I wonder why the concept of credit unions has never caught on in the UK? Cartel excluding new entrants perhaps?

 

[Slim]

Well, I think you are very lucky not to have had a bank charge. But it is not soley down to good money managment. It only takes one occasion where your sallary is paid a day late and the charges start racking up. It happened to my sister. Her husband receives his wage by BACS. I don't know if you remember, but a couple of months ago, the BACS system failed. hundreds of thousands of people didn't get their wages on the Friday and had to wait until Monday. Because his wage was late, direct debits were paid and they entered an unauthorised overdraft. They incurred 8 charges in one day, totalling £320. Also after the banks saying that they would make allowances for the BACS system failing, they refused to refund these charges. I advised my sister to call the bank, quote the relevent law, threaten with FOS and also threaten with moving banks. They refunded the charges in the end.

But it just goes to show, that you can be excelent with handling your money. One slip up and its charge charge charge.

 

[Woody Alan]

It's often luck but I also have made a point of not paying bank charges in the last 30 years and I spent 2 years shifting a debt on interest free cradit cards so I did put some effort into it, and I also pay all my credit card off every month. I just don't like the idea of wasting money that could be spent on good tools.
My company paid me a day late a couple of years ago and bank charges were incurred, they said they would refund me if I filled out a load of paperwork so I rang my bank and spoke to a manager and said reasonably how come I was having all this hassle through no fault of my own when two massive coperate business cocked up shouldn't they sort it transparently to me and he said yes you're right and he refunded the charges, this was after I was fobbed off by the call centre. Luck at the end of the day, but speaking to the right person helps.

Alan

 

[greggy]

hi all, first let me give a breif history.i am 52 been married 18 yrs, never had credit so never owed owt, last 3 yrs of marrage trouble, got divorced cos the then wife left me in £9,000 debt.trying to pay it off took the last ten yrs averageing £130.00a week take home pay, not very easy to do so juggling the pennies was hard . but for the last 18 months i am debt free and bl***y proud of it . now the banks have had their share they are getting no more . so its my ******* turn. end of story. ps i am sorry if i bored you all .

 

[White House Workshop]

I wasn't aware the BACS system failed, but then I've been self-employed for a while and pay comes either in the form of cheques or by direct deposit when the client feels like it. Mostly they're pretty good, as the longest wait I had was less than 7 weeks from invoice submission. I have only dealt with large companies so far though! The complication from my perspective is irregular monthly income, irregular monthly VAT returns, etc. so I have a different set of issues to address.

Years and years ago a good FSA advised me that I should carry a 'cushion' of 3 months living expenses and I have always done that. Also, I set up my debits (when I was in full time employment) so that they went out generally 7 days after I got my money in. Is that where most people's problems stem from - credit one day, debit the next gives no flexibility in the system? I have worked in the banking and credit card industry and boy do they have problems! I'm another of those people that credit card companies hate, as I too pay off the full balance every month on all my cards.

My eldest son was also left in the lurch with massive debts by his first wife and it took him 5 years to get back on his feet properly. However, he actively managed the relationship with his bank and building society and did not incur any extra charges. I think that's the solution - you have to be proactive and direct. Forget call centres - I've developed call centres for some large companies and they are set up to buffer you from the people who could solve your problem. Gon online, get the name of the COO or other and contact them directly. It always works.

 

[greggy]

hi w,h,w, you are so right. perhaps now that they get their money from the banks they will have learned their lesson about manageing their money. :roll:

 

[Slim]

White House Workshop, I applaud you and your son that you are able to manage your money so well, especially being self-employed. I am self employed and I certainly don't find it easy.

The fact remains though, that banks are being unlawfull in their actions. They are taking advantage of the people who can least afford it, and they cannot be allowed to get away with it. We allow far to much to go unchecked in this 'rip-off' Britain. I for one am extremely pleased to see people fighting back.

 

[greggy]

simon,i too feel the way you do about this country. rip off britain is too kind. we are all born free. but taxed to ******* DEATH and i for one am totally fed up. i just wish i could get away from this god forsaken place, but i cant for family reasons.but what i have learned in the past few years is that i do not ever pay full price for any thing apart from the normal weekly groceries,( and the wife pays for that)

 

[White House Workshop]

Of course you're right, Simon, but people are their own worst enemies. Self-employment doesn't usually pay my bills, unfortunately, so I keep my fingers in several pies. Last year was exceptionally good (especially when the taxman gets his bit later this summer!) but this year has been poor; that's the way it is. Thus, if I don't have good money management skills I'm screwed. I like to think some of it rubbed off on the boys, as I used to be a bit conservative when it comes to money. My grandfather used to say 'If I can't pay cash for it, I can't have it', and I think that's a bit extreme, but there are too many people who 'live today, pay tomorrow' without thinking about the consequences, and when they get hard up they continue to spend or simply move the debt around instead of cutting back. (No comment on anyone in here intended as I don't presume to know any individual circumstances.) I still have a 6-figure mortgage and will keep it as long as I can because it keeps my credit rating up high to make those monthly payments. On an offset basis it isn't costing me very much in reality so why pay it off?

My wife says I should become an FA, but the industry has such a bad name generally I don't think I'd enjoy it at all. The problem (I think) is that anyone can set themselves up as an FA with no qualifications whatsoever - hence the bad apples give the rest a bad name, plus there are now too many bad apples. I do know a couple of insurance salesmen who called themselves 'financial advisors', now ex-salesmen, who are living quite well off the annuity business they sold 15, 20 years ago. Those little percentages just keep compounding up!

Seems I'm now rambling....

 

[Slim]

You have a good point. I personally don't have a credit card so I can't spend what I don't have. All of my bank charges have come through my two current accounts and a loan I took out for my business. It is said that this countries ecomony is now reliant on debt, or more accuratly the companies that 'supply' the debt. Which of course makes it a bit precarious.

It shouldn't be long before a case goes through a higher court, and a precedent is set. In fact, Tom Brennan (a barrister) has taken NatWest to court. He is trying to get it into a high court to test the lawfulness of these charges. He is also claiming for punitive damages. If he succeeds, it will really open the flood gates.

There have also been two losses recently, purely down to badly worded particulars of claim. However, they could be a blessing in diguise, as the claimants have been given leave to appeal. If they reword their POC's and win in the appeals court a precedent would be set.

 

[greggy]

well i finaly got my money, £4.792.00. so halifax, up yours. :lol: :lol: :lol: :lol: :lol:

 

[Slim]

Well done Greggy, feels good doesn't it. Enjoy your money =D>

 

[greggy]

thanks simon, it sure does, and they wont get another penny,

 

[darren242]

nice one greggy, good to get one over on the banks every now and then lol, if you fancy splashing out get a triton router then send it this way lol.

Darren

 

[Slim]

Well Greggy, it looks like you were just in time. The OFT have announced today that the are serving papers on the major high street banks tomorrow regarding a high court test case. However they have granted the banks a waiver so they can put on hold all current and future compaints until the test case is resolved. The FSA and FOS have both stated that they will not accept any complaints until the verdict as well. If you go the court route though, the banks will probably request a stay, and it is up to each induvidual judge wether to accept the stay or not. This is a high court case and could take a long time.

I am furious. How can the OFT announce that they think the charges are unlawful, and then effectively stop the general public from complaining and being refunded. :evil: