2007-01-25 23:27:24 · 18 answers · asked by Zoe 1 in Business & Finance ➔ Other - Business & Finance
It is a punishment. People need to learn to manage their money better. We all know the terms when we sign up for a bank account, and in my opinion, the banks are perfectly jusitified to make charges if we break the terms of the agreement. Banking is a buisness, not a charity, and it is there to make money.
2007-01-25 23:35:23 · answer #1 · answered by Anonymous · 4⤊ 1⤋
Let's see you want them to provide you with funds for free. You want to be able to mismanage your funds at their expense. Its okay to charge purchases to them free of charge and never pay a penalty. Pardon me if I'm a bank and I don't want your business. A debit card is just that. It gives you your own money. Would you write a check if you didn't have sufficient funds. That's not legal. If you are charging to a credit card that is understood before hand. Read your contract. That is what your card agreement is. You have to comply with the terms and they are not charging bills you don't have money in your account for. To you it looks like a slip up. To the bank it looks no different than someone with someone else's cards running up debits. You maybe the most honest person but they don't know at the bank that you unintentionally used the wrong card. They see crooks do the same thing you did everyday.
2016-05-24 01:19:32 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Banks charge some fee for not maintaining the minimum balance in the account by their customer. The very purpose of levying such fee is to inculcate the habit of adhering to the financial discipline in the financial sector and also providing the minimum income to the Bank by virtue of such maintenance of minimum balance.
However, the question of charging such fee when there is no balance or less balance in the account is mainly because in the event of some funds coming to the account in future, the Bank gets its fee collected by debit to such account (where the balance was not sufficient at the time of levying the same.).
2007-01-25 23:42:01 · answer #3 · answered by Dj 1 · 0⤊ 0⤋
Because they're a bunch of greedy bankers is why. Your best bet is to have all your salary etc put into a savings account which pays interest. This way you do not pay bank charges. You do not get a cheque book either, but most banks will roll out a cheque for you to a named firm or person - no problemo. I heard that in the States all banks must pay interest on current accounts - why not here in UK? Time for a bank customers' revolution.
2007-01-25 23:40:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
That's a good question and one I have asked more than one bank. You go £5 overdrawn and they charge you £30 to tell you so you are now £35 overdrawn. If they just didn't bother to tell you it would sort itself out next time your wages went in. The truth is they do it because they can. All banks are the same so it doesn't matter which one you use they are all as bad as each other as far as I can see. But it's almost impossible to do without them so what can we do.
2007-01-26 00:04:53 · answer #5 · answered by gerrifriend 6 · 0⤊ 0⤋
Another great site is
http://www.penaltycharges.co.uk/
when in site click on 'skip intro' at right hand side. On next page click on 'forum' You'll find every which way question/answer. They also have letters drawn up by lawyers which you can download then print off, to send to banks to reclaim charges. There is a procedure to follow. If you scroll down there is a forum on Uk banks and Building soc
2007-01-25 23:57:42 · answer #6 · answered by Angelfish 6 · 0⤊ 0⤋
They claim that is the fee that they incur for you havig insufficint funds. However, the fee is actuallly only for them to send you a letter saying that you've got insufficint funds!!
Legally, you can claim all fees back, for the past 6 years, as it's been proved that they are charging too much.
Go to below website for more information:
https://www.which.co.uk/reports_and_campaigns/money/campaigns/Banking%20and%20credit/The%20ASBO%20campaign/take_recovery_action_559_75004.jsp
2007-01-25 23:36:00 · answer #7 · answered by Wafflebox 5 · 1⤊ 0⤋
For a similar reason why hospitals charge 5X more for the same services when you don't have insurance.
The answer is, "Cuz they can" - you're already in a bad place, which limits their abillity to get paid, this way if only 1 out 10 pay, they still recoup their expenses.
2007-01-25 23:38:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It is not to teach you a lesson, or kick you when your down. It is to make money out of you. If you are in debt and are going to have trouble paying bank charges, they can turn a simple oversight into a nice little earner.
Thats business.
2007-01-25 23:38:35 · answer #9 · answered by Alice S 6 · 2⤊ 0⤋
An administration fee apparently for re-calling the request
2007-01-25 23:36:05 · answer #10 · answered by ang j 2 · 0⤊ 0⤋