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General Chat Thread, banks win bank charges supreme court case in General; Banks win Supreme Court case on overdraft charges BBC News - Banks win Supreme Court case on overdraft charges I've ...
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    sandeep2504's Avatar
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    banks win bank charges supreme court case

    Banks win Supreme Court case on overdraft charges

    BBC News - Banks win Supreme Court case on overdraft charges

    I've never understood how people can claim charges isnt it their own fault for getting overdrawn?

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    SteveBentley's Avatar
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    I think the claim was that the *amount* they were being charged was unfair - the banks aren't allowed to issue fines, just recover their admin costs, and people felt that £35 to be sent a standard letter was over the top.

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    TechMonkey's Avatar
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    I don't think that was the case, I think it was more the excessive charges.

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    apoth0r's Avatar
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    Not everyone has the capacity to live within their means.

    As for how much they charge for a piece of paper to be sent + interest is rediculous. But it makes the banks 2.8 billion a year so i guess the people who get themselves in those situations should be punished!
    MISTAKES WITH MONEY SHALL NOT BE TOLERATED.... wait.... didn't the government just bail out the banks.....

    Hmmmmmmmmm.

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    bossman (25th November 2009)

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    Theblacksheep's Avatar
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    Quote Originally Posted by sandeep2504 View Post
    Banks win Supreme Court case on overdraft charges

    BBC News - Banks win Supreme Court case on overdraft charges

    I've never understood how people can claim charges isnt it their own fault for getting overdrawn?
    booooooooooooooooooooooooooooooooooooooooooooooooo ooo


    Its the size and justification of the charges.... some were charging silly amount of pounds for pennies. It really takes the Michael when each of the banks went 50 billion each overdrawn last year and I doubt they got charge 10000% on it.

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    bossman (25th November 2009)

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    russdev's Avatar
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    As article pointed out this was about if the OFT could investigate it under a certain regulation and not about if the charges where in effect fair.

    As said on the news this morning either way who ever won it not over yet..

    Russ

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    i wonder how much the banks paid to win this muct of been a lot to make sure that the OFT cannot even appeal it

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    cookie_monster's Avatar
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    Quote Originally Posted by Boon72 View Post
    i wonder how much the banks paid to win this muct of been a lot to make sure that the OFT cannot even appeal it

    I think it's more that the banks would of had to return allot of money if they lost (they should of the charges are a disgrace), now that they don't have any and the government own the rest and they don't have any money either this whole case had to be buried.



    @ apoth0r
    Not everyone has the capacity to live within their means.
    That's a different issue and not the banks problem. The bank don't pay your salary if you don't earn enough to live then that's a government/welfare issue.
    Last edited by cookie_monster; 25th November 2009 at 12:55 PM.

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    See, this is all a bit daft really. As people have said, it's not the charging as we all sign up to say "we'll stay within our agreed limits otherwise will accept to pay administration charges" it's in most if not all small print for anything financial.

    I think the big problem has been the amount. Now my bank has brought in some new terms with regards to charges over the past 2 years or so that if you go over your agreed limit there is a standard £25 charge, however, they will only make a charge up to the value you have gone overdrawn, so if you go £5 over then it's not going to cost you £25 but £5 (or something like that .. I can't remember the exact thing).

    Sadly, a lot of the statements about there being many different ways to avoid such charges aren't true as I got hit with the recession when a number of my small clients withdrew their marketing budget (I'm a graphic designer outside of the IT geekness) which meant they withdrew my services, so I had limited contracts with them but sadly ..

    Anyway, long story short, I contacted my bank about 12 months ago when that all started to take place and told them how things were and wanted to agree some kind of formal limit with them (or loan) to cover this issue, but it wasn't until last month that they finally agreed I was somewhat because of all the charges they had been making and that they actually decided to help me, but this was only after screwing me for ££££ in charges.

    So, back to the original point, banks making charges is ok by my books as they are, after all, a business dealing with our money and if we start having to use their money they reserve the right to charge us for it, but the amount they charge for having a computer produce a mail-merge letter (something I'm sure we've all helped someone do at somepoint) is madness - £25+ ..

    Having said that, I might take a leaf from their book and everytime a teacher comes to me with a laptop that they have "operated outside of the agreed limits" charge them an admin fee of £35 for issuing a letter about what I'm going to do about it and a further daily charge for the time the laptop is in my possession being fixed .. lol .. do you think schools would allow that?

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    sandeep2504's Avatar
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    Just been looking at the fees and i agree they are excessive but i'm adamant people should still be punished for being overdrawn.

    We are meant to live within our means?

    Isn't that why we are in the economical situation?

    Are consumers getting refunds for the excessive amount or on a basis where a non excessive charge is agreed?

    really interested in peoples views.

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    somabc's Avatar
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    It's a good thing I claimed all mine back then before the court case and now I get to keep enjoying free banking!

    Banking in the UK has always been funded by those least able to pay, they pay high charges and interest rates so that those with money can enjoy free banking and financial services with 'rewards' such as 0% interest or cashback, free air miles, a concierge service etc.

    It looks like the bank said to the court if you don't let us make these charges we won't make any money and then we will have to introduce monthly charges and the court said we can't have that!
    Last edited by somabc; 25th November 2009 at 01:14 PM.

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    RabbieBurns's Avatar
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    most of the banks here have abolished overdraft fees. However most accounts have a $5 minimum each month, and using an ATM that isnt your banks incurs a fee of over $2 a transaction..

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    bossman's Avatar
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    @all:

    It seems to me like there are those people who look after their money and those that don't and the few that find it hard to live and therefore rely heavily on an overdraft facility.

    Like anything else which is a service you have to pay for it but some people think that it should be free why? you wouldn't get on a bus without buying a ticket, everything in this country today is geared around the service industry as the production industry has gone elsewhere and therefore the government had to find more ways of producing profit and this has been done through the banks using taxpayers money to invest in highly lucrative dealings which has then been taken to the max by greedy bankers investing in very high risk dealings.

    All this is linked to the buy now pay later culture which we have in this country.

    It is capitalism at it's very best using the poor peoples money to make vast profits for themselves and the top 10% in the country and then screwing them later for hand outs when all these shady dealings fell through.

    I think that every one should take their money out of the banks and pay cash for things instead of credit and see where the banks end up.

    Both the banks and society are at fault here, the banks for being so greedy and the people for also being greedy but not wanting to wait for things e.g. got to have my 50" lcd television with surround sound on the never never.

    Only those who have been careful with their money are the real losers as they are suffering everywhere in taxes, in charges etc etc to pay for those that don't give a damn about being in debt through their own fault.

  16. Thanks to bossman from:

    webman (26th November 2009)

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    cookie_monster's Avatar
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    Quote Originally Posted by somabc View Post
    It's a good thing I claimed all mine back then before the court case and now I get to keep enjoying free banking!

    Banking in the UK has always been funded by those least able to pay, they pay high charges and interest rates so that those with money can enjoy free banking and financial services with 'rewards' such as 0% interest or cashback, free air miles, a concierge service etc.

    It looks like the bank said to the court if you don't let us make these charges we won't make any money and then we will have to introduce monthly charges and the court said we can't have that!

    The people with loads of money need all of those savings so they can pay the expensive accountant that helps them avoid paying any taxes, e.g. cough front man of popular band beginning with U and ending in a number.

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    stephenleak's Avatar
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    It was the amount charged. For example, I lend you £10 and you agree to pay it back in a week. You don't. I ring you to remind you. I can add the cost of that call to the debt. I cannot charge you £35. It doesn't cost a bank £35 to send you an automatic standard letter if you go overdrawn, over a credit limit or whatever.

    OTOH, if you lend someone £10 and never see them again, it was probably worth it.

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