Bank charges on the way!!

[Indestructable]

Every time I read an interview from chairmen of Banks of late there is a throw away comment that free banking may be on the way out. It is almost like a cartel agreement that they know something we don't know. I have just read the front page of the Telegraph and this backs up the likelihood that free banking is to be scrapped. This all comes on the back of the overdraft charges that we have read about elsewhere on the forum. If they can't charge the way they have been then they will look for the money elsewhere.
For those of us old enough to remember, we used to have free banking providing you kept £100 in your account. Then the Building societies offerred free banking providing you were in credit. The banks had to retaliate by offerring the same service in fear of losing customers.
However, the problem for banks was how to get around this. Easy, by taking away the competition! Over time most of the building societies have now been bought by Banks eg Halifax, Woolwich, Abbey, C & G etc. Account holders rubbed their hands with glee to take the free shares and gradually their rates were reduced and branches closed (Woolwich as an example doesn't exist anymore)
So look out for forthcoming news in the press about charges on the way. Will it be for every time you use the ATM, or a flat fee who knows. But IMHO one thing for sure free banking is about to dissappear.
 

[M3boy]

Definately!!

Especially if the banks loose the test case re unfair bank charges and "have" to repay them EVEN to the people who have not asked for them! - but knowing our legal system, this "test" case will go on for years!

[jizzemm]

Charges will be here for sure, this all because of the legal people who decided to coin in some more money to get compo or money back.. The poor people who pay charges they say, dont go overdrawn dont pay a charge, now everybody will have to pay for those people.. Bank's are part part of most people's pension funds, and I for one am disgusted in how people have got money back, terms & conditions are there for people to see..

(i dont work for a bank  ) before somebody sais so..

[matt674]

terms & conditions are there for people to see..

True, thats not the point most people are complaining about - its the amount of money banks charge. Fine if i go overdrawn then yes its my responsibility for not looking after my account properly but charge me a fair amount.

Being charged a total of £130 for going 50p overdrawn isn't a fair amount.

[Graham C]

I'm amazed we've ever got free banking to be honest, glad we do/did, but there aren't many companies about that will provide a service that banks do for nothing.  I appreciate that they invest our money and make their money that way, but not every account is like that and I expect 90% of personal accounts certainly aren't like that.

They could do with lowering business charges though, they are horrendous.  No wonder HSBC made £10bn profit last year

[jizzemm]

Yes a good point and I do agree with u there, that amount is stupid for such a small amount, but I suppose overdrawn is overdrawn, the standard charges are high, but this is what keeps banking free at them moment, you only need to look at credit cards, once they had to reduces their charges, all that has happened is %apr has gone up accross the board for everybody else.

[ifm]

Yep, i was charged £70 for being 9p overdrawn for 2 hours when i got the timezones mixed up in Vegas earlier this year, my fault but come on that's a ridiculous amount of money for an automated letter.

[Bongo]

The poor people who pay charges they say, dont go overdrawn dont pay a charge, now everybody will have to pay for those people..

Surely it was them who was paying for everyone else previously?

[Indestructable]

Yep, i was charged £70 for being 9p overdrawn for 2 hours when i got the timezones mixed up in Vegas earlier this year, my fault but come on that's a ridiculous amount of money for an automated letter.

Are you sure that is right, does seem odd? I presume although you say hours that you were overdrawn on one day and in credit the next but it was over night uk time the 2 hours period referred to? But eitherway I thought most banks had an automated minimum tolerance to prevent this happening.