Banks and charging?

Question

When, are poeple going to realise that banks are a business? I have been seeing all this commotion about bank charges and people claiming charges back with amazement.
Banks are there to make money, just like any other business, so therefore, they are going to make a charge when you don't adhere to the contract you have signed with the bank, where, it will clearly states how you must conduct the account, how many of you asked what the charges were when you opened the account?

How can the bank charges be illegal? If you have signed a contract with a bank, and the contract small print states you will be charged for letters, unauthorised overdrafts, bounced cheques and direct debits??????

Answer 1

I'm sorry but I think it's a ripoff. I accept that, technically you are correct, but most people don't have magnifying glasses powerfull enough to read the 'small print'. In reality it must cost less than £1 to generate these automated letters. OK, it's quite acceptable that banks should be allowed to make a profit when sending out these letters, so what's wrong with £3?

Whilst we're on the subject of bank ripoffs, when you consider that even the 4 leading banks can't agree on the exact meaning of 'APR', what chance does the man in the street have! If you also take into account that some banks use 'AER' (whatever that is), is it not surprising that we get a little confused! It seems that only the financial institutions can get away with this form of deception. By complete contrast, in the retail trade, we have packets of peanuts saying, "warning, may contain nuts."

Seems like double standards to me!

Answer 2

the point is, is that these charges are illegal. The bank is not allowed to do this.

the bank is a multi-billion pound business and it has to adhere to rules just like us average joes.

edit:
The charges are illegal because the LAW states that they are not allowed to impose a fine greater than the cost of their expense. For example; if you go overdrawn unauthorised and they charge you £40, they need to prove that it costs them £40 to cover their charges i.e letter, interest etc Of course, they can't so they have to now give these monies back.

The law is the law is the law....

Answer 3

I have to have my wages put into the bank, and I also have to have direct debits. If the banks charge fo my current account, then I am under duress to do business with them. This is another GREAT BRITISH cartel, where people are roped into a system and then punished for their 'choice' when it is NOT their choice. The whole concept of capitalism is based on cartels, where huge numbers of poorer people are purposely deskilled so that the few can then create a mass production environment and the excuse to make eveything on their behalf. BRITISH = CARTEL.

Answer 4

if you tell someone you are going to smash their car up before you do it, it doesnt make it legal does it? signing a contract with the bank makes no difference, the point of the matter is that the charges the banks are imposing are not proportional to the costs they incur, therefore, the charges, by law, are illegal. drug dealers are "there to make money" as are bank robbers,muggers and conmen. doesnt make it right does it? if people are overdrawn on their account the only cost to the bank is sending out a letter to inform them they are overdrawn, this costs 27pence. NOT £35.00.

Answer 5

hi, (ANS) What maximum folk (banking shoppers) forget is that having a economic enterprise account ability you have "a shared relationship" inclusive of your economic enterprise. by way of fact of this the economic enterprise has a responsability to you the customer yet you besides mght have an obligation to the economic enterprise to no longer abuse the provider provided. **to place it merely who's in charge:- The economic enterprise is 50% in charge to you & you're 50% in charge to the economic enterprise for the way you employ the provider. **this means that once a individual has an overdraft facility that's an agreed function of the account or present day account. Its standard that an agreed overdraft facility is charged for at a definite mentioned fee (the fee is often in Black & White interior the money owed T&C documentation). i.e. you have agreed to the expenses once you opened the account all those months or years in the past. **Banks do tend to get very disenchanted in case you pass over your agreed overdraft decrease with out telling them first, that's by way of fact its no longer your individual money your utilising or drawing against. this is that if fact be told the banks very own money. Banks are if fact be told lending you "their money" once you employ an overdraft or pass over your present OD decrease. The economic enterprise is lending their money to you based on the perceived point of threat you signify to them i.e. credit scoring. **subsequently the greater you pass over the OD decrease the better the expenses or effects they'll slap on good as they experience the possibility of returning or convalescing is going down with increasing debit stages. **regardless of what many banks declare, there is not any! such factor as unfastened banking. Banks consistently fee for his or her centers in spite of if the fees are hidden in different techniques. **keep in mind Banks are no longer charities they surely exist just to make a money in on what they do. all of us questioning in any different case is being naive in my opinion. type Regards from Ivan

Answer 6

I don't think it's so much the charging that annoyed folk it was the amount they were charged that got them rebelling , the banks are getting greedier and greedier and now they actually boast about the massive profits they make annoying joe public even more .. their profits are obcene.

Answer 7

Over 50% of retail banks' revenue comes from fees.