Bank charges -what can be done?

[0742Sheff]

This is exactly what happened to me about 8 years ago and it lead to me getting in to quite a bit of debt.

I didn't have enough wages going in to cover quite a few direct debits. The bank took their loan payment first and rejected most of the others. I was left with 6 charges in one go (back then they were £25 each). If the bank had rejected the loan payment and paid the rest i would have been left with just the one charge.

 

To pay the charges i went and cashed a load of cheques which in turn set me off on a whole heap of debt that i am still paying off today.

[DaFoot]

There is no reason to charge for any of these things, computer A asks computer B for money, computer B says there isn't any, end of the transaction, where has the cost been incurred ?

 

Is the charge to compensate the computers for the inconveniance ?

 

I would imagine there are all sorts of charges going on between banks for handling each others customer's transactions. If a bank says no to another bank I wouldn't be suprised if they charge each other - those charges get passed (+ a bit probably).

[Obelix]

There is no reason to charge for any of these things, computer A asks computer B for money, computer B says there isn't any, end of the transaction, where has the cost been incurred ?

 

Is the charge to compensate the computers for the inconveniance ?

 

The average current account in total costs about £6 a month to run which is borne by the bank. That's after the small amount they make on overnight lending of the balance.

 

People either can therefore pay for current account banking, or the banks can fund it from penalty charges for those that cannot manage it. That's the model that the UK has picked.

 

Personally I'd rather see the other option, but if it does come in I can just imagine the squeals of outrage that will ensue.... however those wanting to crusade against bank charges will end up foprcing that situation and I'll bet they are the ones that complain the most.

[Grandad.Malky]

The thing to do is to get in there first, if he knew or even expected there may have been a problem when changing jobs he could have extended the O/ D just in case, if more DD`s are due he needs to talk to the bank now ………. Not after he gets another letter.

[Bulgarian]

People either can therefore pay for current account banking, or the banks can fund it from penalty charges for those that cannot manage it. That's the model that the UK has picked.

 

If there was more money to be made from charging people to have a bank account then banks would be doing it, they are clinging to the system they have now because it makes them more money.

[gribz]

I mean honestly what can be done - not what do people assume can be done.

 

In the end it depends what bank they are with, they may be able to waive one or two of the charges as goodwill. Ask him to call up, don't bother calling a branch as they are only there to sell things, and have a chat with someone.

 

Hopefully, as long as they don't go in like a bull in a china shop, they could speak to someone with a bit of common sense and have a reasonable chat about it. If they haven't had charges before then there may be a chance something can be done.

 

Making a complaint at this stage would get them precisely nowhere, you'd just get a standard reply saying the charges are valid.

 

From what you've said no one but the account holder made any errors, chances are they will have to stand to them unless some discretion is used.

 

Good luck !