bank charges

[elpedro999]

About time....

http://news.bbc.co.uk/1/hi/scotland/4722288.stm

what are peoples experiences? anyone sucessful in getting them removed? especially from hbos?

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Pete

[munchingfoo]

I don't quite understand what all the fuss is about. Its not bloody difficult remian under your overdraft limit and if you go over it its your own fault, not the fault of the banks. (The only exception being if perhaps the bank made a charge which put you over the limit then charging you for this limit breach.)

There are many avenues students can take if they run short of cash, most of which come under the control of Student Support Services. I have been short of cash before and needed to buy things like food etc but you just have to keep an eye on your limit and don't cross it.

[hr]

Tired Freudian references aside - your mother played my mighty skin flute like a surf crowned sea nymph trying to rouse Poseidon from his watery slumber!

[flarewearer]

In my experience it *is* often the banks fault, when they randomnly and without warning cancel the overdraft and begin charging fees and interest. Of course, they only return the charges if you pester them for it and kick up a fuss in writing. If you didn't do this they would quite happily sit on your money.

Yes it probably *is* the student's fault for going over the overdraft, but the banks must take part of the blame. They shouldnt have a mechanism by which you *CAN* spend money you don't have i.e. ridiculously slow updating of records over weekends meaning you can switch and withdraw cash from non-network machines over your limit - money should come off when you spend it, money shouldn't come off if there are no funds to honour the transaction.

The majority of students are young and financially niave, and it does smack rather of the banks taking them for a ride. They are ever so keen to get you to take out an overdraft and open a credit card with them, and it's rather obvious why; as a customer you are worth more as a debtor than a saver.

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image:www.magnificentoctopus.com/x/elgar.png

[queen of scots]

Quoting flarewearer from 09:31, 17th Feb 2006
The majority of students are young and financially niave, and it does smack rather of the banks taking them for a ride. They are ever so keen to get you to take out an overdraft and open a credit card with them, and it's rather obvious why; as a customer you are worth more as a debtor than a saver.

I was really annoyed a few years ago when I saw the Royal Bank had chosen to give me an overdraft, without me even having requested one. I've never had an overdraft facility in my life and never wanted one, and I didn't see why they just randomly gave me one - without even bothering to tell me! It's easy to see how students might be encouraged to spend money they don't have, as when I checked my balance online, it looked as though there was a bit more in there than I had been expecting - simply because they had decided I could do with an overdraft. I got it removed, but it seemed rather irresponsible of the bank.


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Life is like a beautiful melody, only the lyrics are messed up.

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[Guest]

Banks are businesses, not charities. They're here to make money. Students aren't really profitable except when bank charges are levied against them, or if they're in debt to the bank. I don't see how the charges are unfair, they're clearly stated and it's not all that difficult to live within your means. You may not know exactly what your balance is, but you know about what it is, and no charge should be a surprise.

I really have no sympathy for students who get bank charges.

[Smith]

It's not really fair when you have no money in your account, go into the bank and specifically tell them that you won't be able to make your minimum credit card payment until the week after, and they completely agree, then when your statement comes in, you have a £30 fine for going over your limit.

Don't try and tell me that's fair, because it isn't.

[hr]

We're not drunk, we're multi-millionaires...
IMAGE:img.photobucket.com/albums/v516/ryanlewisjones/burlyman.jpg

[queen of scots]

This article was on the BBC a few days ago - but I can't find it now, so here it is in full:

Barclaycard gets tough on customers

Barclaycard customers who pay their bills in full each month may have their payment date suddenly brought forward, the bank has told the BBC.

The move could put customers at risk of incurring a £20 late payment fee if they do not examine their bills carefully each month.

This revelation comes amid continued criticism of bank profits and not long after the Office of Fair Trading (OFT) investigation into late payment charges.

However, Barclaycard denies it is trying to rake in late penalties, and says it never guarantees customers a fixed payment date each month.

Speaking to BBC Radio 4's Money Box programme, Barclaycard's Ian Barber said any change of date will be explicitly outlined on the customer's statement.

He said Barclaycard was "having to face up to the fact that clearly we are not making as much money out of customers that pay their bill in full as we are out of those that borrow", he said.

He added that the company was "quite open about it... if you pay your bill in full every month you may get a few days less to pay...

"That is the fact of it and we are not going to shy away from that."

Holiday period

Money Box listener Justin from Cambridge contacted the programme after he received his latest bill.

"When I looked at all my previous statements and my February statement, all the payments were required on the 9th of the month. The only one which is not is the December statement which requires payment by the 3 January.

Justin believes Barclaycard has a policy to maximise penalty payments, and he was concerned the company was doing it during the holiday period when banks are often shut.

But Mr Barber denied this and said: "What typically would have happened here is that he would have for a period of time, probably three, four or five months, been regularly paying his bill in full.

"Once we recognise that someone is regularly paying their bill in full, we will shorten the time that they have got to pay a little, and that is what will have happened here."

A simple way to avoid the risk of any late payment charge was, Mr Barber said: "to set a direct debit payment up on the account.

"It is universally good advice to set up a direct debit for at least the minimum amount.

"That way you can make sure you are not going to be hit with any late payment charges, and obviously if you want to pay more on top of that direct debit it is very easy to do so."

[hr]
Another rather underhand action by the banks?

[hr]

Life is like a beautiful melody, only the lyrics are messed up.

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[Kenny MacDonald]

Really? Hogwash.

I got charged £30 from the Bank of Scotland by going over my overdraft limit by 5 pence. That represents a mark-up of 60,000%.

Did I incur the Bank of Scotland £30 in costs for sending out a computer generated letter to inform me of unauthorised borrowing of the sum of 5 pence? Unlikely. As such, "penalty" charges are irrecoverable under Scots Law.

Banks are also required to deal "positively and sympathetically" with those who encounter financial difficulty under the Banking Code, which most Retail Banks subscribe to.

I phoned up Bank of Scotland and gave them hell. Charges were refunded in full within 48 hours.

Don't stand for it!

Quoting from 10:47, 17th Feb 2006
Banks are businesses, not charities. They're here to make money. Students aren't really profitable except when bank charges are levied against them, or if they're in debt to the bank. I don't see how the charges are unfair, they're clearly stated and it's not all that difficult to live within your means. You may not know exactly what your balance is, but you know about what it is, and no charge should be a surprise.

I really have no sympathy for students who get bank charges.

[hr]

SRC Member for University Accommodation


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[Oli]

This year, the union insisted that any banks advertising their services also handed every student a sheet of fees and penalties, so that students would be made aware of them.

[flarewearer]

Quoting from 10:47, 17th Feb 2006
I really have no sympathy for students who get bank charges.

Even when it is the Bank's fault?

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image:www.magnificentoctopus.com/x/elgar.png

[daduffster]

To be fair, more often than not it is not the fault of the bank. However, that does not mean to say that they do not make errors and, if they do, they should admit to it and refund any charge.

When I opened my Student Account at RBS I got told I had to have an overdraft and assumend that I had one. Being very careful with my money, I had never been into my overdraft ever until December last year when I forgot to transfer money from my ISA of summer work savings to my Student Account which had a standing order for my rent. This part was clearly my fault but, thinking I had an overdraft, I just transferred the money the next day.

It turned out I had no overdraft which meant I incurred a £30 charge. Of course, this annoyed me as I was led to believe I had such a facility. However, I explained my situation to the local branch who were sympathetic and refunded the charge. Easy!

Of course, if I had not been told I had an overdraft it would have been my fault and would have accepted the charge without complaint as I was overdrawn by an amount relatively much larger than the charge. However, I agree that a £30 charge for going fractionally over is harsh and banks should be more understanding of students' situations. In general, though, I don't think there is a problem with banks charging for being overdrawn, it is not your money after all and student accounts provide many additional benefits

[Guest]

I can't believe that Barclaycard would deliberately go out of their way to try and catch out the customers who are regularly paying their bills. I think its disgusting that they are being penalised for making payments.

[maenad]

Quoting from 13:30, 17th Feb 2006
I can't believe that Barclaycard would deliberately go out of their way to try and catch out the customers who are regularly paying their bills. I think its disgusting that they are being penalised for making payments.

Indeed. I know banks are businesses. But people who pay their bills on time are obviously organised people who keep track of their finances. Giving them less time to pay is simply meanness and greediness on the part of the bank.

I do think they want us in debt. I got a credit card when I went abroad on my gap year - never used the thing but I wanted it in case of emergencies. I had to have a meeting with the manager because I wasn't earning enough, etc. to fulfill their requirements for a card. I had to tell them my parents would pay if I used it. The bank agreed to give me a card with a limit of £1000, which I thought was huge.

It came through with a limit of £5000. What the hell? I could have maxed out that card and I'd have had absolutely no way of paying it back. I know it's up to the individual to keep track of their finances, and I do, but still - the bank had all my financial details right there. The whole point of their regulations in the first place was - I thought - so they didn't give credit cards to people who couldn't keep up with payments.

[exnihilo]

Quoting from 13:30, 17th Feb 2006
I can't believe that Barclaycard would deliberately go out of their way to try and catch out the customers who are regularly paying their bills. I think its disgusting that they are being penalised for making payments.

Apparently, in an odd twist of thinking, credit card companies think of people who pay in full as "deadbeats" because they make no money from them as they pay no interest. The only way to get money from those people is annual charges and penalties.

It also serves banks to give you a higher limit than you can pay, this leads to a situation where you rack up a large balance and your subsequent monthly payments are largely interest and not the principal. This means a lot more money for the bank, and the odds are good that you'll eventually have more income and pay off the debt, but in the meantime you keep sending them cheques and the balance never goes down.

[exnihilo]

Quoting exnihilo from 21:52, 17th Feb 2006

Quoting from 13:30, 17th Feb 2006
I can't believe that Barclaycard would deliberately go out of their way to try and catch out the customers who are regularly paying their bills. I think its disgusting that they are being penalised for making payments.

Apparently, in an odd twist of thinking, credit card companies think of people who pay in full as "deadbeats" because they make no money from them as they pay no interest. The only way to get money from those people is annual charges and penalties.

It also serves banks to give you a higher limit than you can pay, this leads to a situation where you rack up a large balance and your subsequent monthly payments are largely interest and not the principal. This means a lot more money for the bank, and the odds are good that you'll eventually have more income and pay off the debt, but in the meantime you keep sending them cheques and the balance never goes down.

[i am in the ****]

Or, when it come up for review, they can reduce your overdraft limit by 800 squids forcing you to immediately produce 680pounds out of thin air, meaning your are guaranteed to be over your "approved limit" gah. Bastards. Yes I know I should have been trying to pay of, and I have, but it ain't easy. Gah.

[thebrookster]

Whilst I can agree with the point of view that students should keep an eye on their finances, there should surely be a limit to this. Most students will have little idea about finance. Given that you constantly see adverts about all the advice banks are offering business users to make their life easier, why can't they do the same thing for students. Maybe be a bit more pro-active in offering advice etc. Having been in financial difficulties before, and still am, the amount of letters that come through the post telling us that we have such and such a charge, and then telling us to contact them to avoid such things happening again. Then when you go and speak to them they say that they can do absolutely nothing at all!! That is imoral! Business or no business. A small amount of lee-way helps us massively, and doesn't really cost the bank anything because they have satisfied customers who will be more likely to use some of the other services on offer.