How do Banks become rich what do you think of them ripping off civilians i.e. tax payers/low income families?

Question

Without naming names, as one has to be politically correct these days, this is a true story of how Banks can be a mere rip-off than a help. I came to the UK & went straight into study. As a single parent and on very low income, it proved very hard saving for pay bills etc.for or survival. I got a Current account with one of the reputable Banks here & a Child's one for my daughter. As a student, I should've automatically got a student account but the Bank didn't advise me on that - prejudice no. 1. As a novice in the Banking systems here, I asked no questions & so delved into something that has hunted me since. Now, I had direct debits that came off my accounts every now & again. There was one point when consecutively, 10 DDs were declined from the same account & for which the Bank charged me £35 each. This amounted to £350. I didn't have the funds to pay it off so it accumulated & I was taken to the Bailiffs who added their fees. I paid over £1000 & was blacklisted & doomed for!

Answer 1

they charge high interest charges

Answer 2

The problem is this, if the bank does not charge then they run your account at a loss. Why should they do that? They are not a charity. They are a private business enterprise and have shareholders to appease. Most people have free banking, because most people run their account within their facilities. So there is no real money to be made there, just losses. If you create the Bank extra work, whether you want them to send money abroad, or manage your account because you keep spending more money than you have got, then they will charge.

If you took £50 from your employers desk without asking, you would most likely end up with the sack or a criminal record. But people think it is fine to spend the banks money without asking.

In nearly every other country in the world you would not have been charged, they would have just closed your account and blacklisted you. In some countiries it is a criminal offence to go overdrawn. In the UK, they give you a chance, they fine you a hefty fee and ask you to talk to them if you need financial advice. Most people ignore these offers and just hope the debt problems will magiclly disappear. They don't always!

I went through a stage of paying hefty fees, it wa s my fault, I was spending more than I earnt. So I cancelled all my Direct Debits and paid the bills when I could afford it. Saved so much from not paying fees that I was back on the straight and narrow again.

Answer 3

It is true that banks are making huge profits these days but that is what all businesses try to do. There is no morality in capitalism (cleverly called free enterprise) , only self interest. Bear in mind the following:

1) Make shure you claim from wellfare all you are legally entitled. If they have money to send troops and bombs to bring "democracy" to Iraq, Afghanistan etc, they have money for you.

2) Be just as selfish towarsds banks your self, as they are towards you. Eg.take up free offers, pay off one credit card from another, pay bills as late as possible (but not too late), etc.

3) Banks have a duty to care, which means if they did not tell you anything important to you ( eg student a/c),you have a legal right for compensation for any loss. So as soon as you got fined or in arrears you should have asked for it to be wiped off. Use typed letters and ask politely but firmly and stubbornly and finally stating you will sue for negligence.

4)The small claims court is cheap and informal and do not be afraid to use it if you have to . There is also free legal advice and representation for people like you. Usually a letter from a solicitor threatening to sue a bank works miracles.

5) You acted rather unwisely. People with small cash balances below £1000 ($1750) say, should not have direct debits. That is a covenience suitable for the better off. Pay every bill by cheque and then you know where the money goes and decide on priorities.

6) Arrange an overdraft limit , but use it only for security. Avoid paying interest, it is money out of the window. Check your a/c balance every week by telephoning.

7) Internet a/c usually have better terms and are very convenient. If in Uk, check Smile, First Direct,or ING Direct.

I hope you will soon get your degree, get a good job and all this will become just a bad memeory.

Answer 4

Bank charges are apparently not illegal but they are highly immoral. I know how you feel as I am a single mum of two,full time student and on low income. I went into my bank the other day and asked to see the details of all the charges they put on my account in the last year. It turned out to be over £800. Even the clerk agreed with me that the service they offer me is not worth that.
There are companies who will advise you step by step on how to get all the charges back, but the first step would be to open a new bank account with a different bank. Good luck with this.

Answer 5

My bank was taking out interest/banking charges before people's end of the month salaries/pensions/benefits went in. Thus making people overdrawn, then charging overdrawn fees. The bank was investigated for this practise.
My bank using this (scam) charged me £150 in total.
I wrote a letter to the head office of the bank telling them to pay it back or face court action.
(Unknown to me someone else was doing the same thing. The case was highlighted in the national press)
The bank paid the charges back into my account.
The bank didn't need the publicity or the embarrassment.
If they lost one case, it would open the flood gates for millions.
The name of my bank? The Abbey.


Yawotei-Ready to jump and help!
You should name the bank you're using so others don't make the same mistake.

Answer 6

When you put it like that, it's an outrage! There is no justification for prioritising the rescuing of people's savings accounts over the care and protection of the poor and needy. But, if you think about the backgrounds and lifestyles of the majority of M.P's, it's really no wonder they're so keen to help. They do have to bail the banks out, though, for the sake of the economy - although more needs to be done to make people accountable when banks get into trouble like this. It's all horribly wrong and immoral.

Answer 7

i am in the banking field and that is how i pay for my school. banks are not ripping off civilians by assessing fees and account fees on their accounts. when you go to the bank and ask to open an account a banker cannot read your mind and assume what type of account your trying to open , they don't if you were a student or a single mother. without you asking questions and doing research on the types of accounts available at a particular bank a banker cannot assume what type of account you are opening.also keep track of your accounts we have on-line banking that you see your accounts on, there are customer care and support present that people take advantage off and use to maintain their accounts. using your common knowledge and understand and also from asking question you will understand how to take of your account and maintain your account by eliminating fees. there are solutions present within the bank for the fees charged. to avoid monthly fees you can have direct deposit, for overdraft fees there is savings and credit card overdraft protection. there are many possibilities available for customers to take advantage off so why not use them.

Answer 8

god this sounds like halifax lol ......... this happend to me best thing to do is go to another bank better still go and open an account at the post office .. best thing also is only have dd for the importatnt things like rent and council tax ....council tax is the worst not to pay ........ other than that if your strugglin like everyone in the uk lately go to a dept consulant ... there dont give you aloan they help you with money situations

Answer 9

Banks depend upon people to error, usually people do every day. This is the risk of banking. Maybe bartering is the answer.

Answer 10

Who were the only group of people that Jesus got mad at ? answer: the moneychangers or modern day BANKERS,
They take your money and sell your account on paper and at the same time keep an account, this creates monies for them.hence they change your money.

Answer 11

they do this by taking bank charges they take interest on credit cards and if you get a lone from the bank they take back lots of interest