Bank Charges - Record numbers changing accounts.

From todays Daily Mail:
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=450473&in_page_id=1770

Record numbers are switching banks as anger mounts over penalty fees and the big five battle to win new customers.

**A bank staffed by Mark Benton wannabe's but without the inteligence, the humour or even the looks of that comedian.

As many as 12,700 customers a day will dump their current account provider - around 2.29 million have done so in the last six months.

The rate is increasing, according to a survey by MoneyExpert.com, with an extra 453,100 moving accounts in the three months to the end of March, compared to the previous quarter.
This comes as the industry faces unprecedented scrutiny over the penalty charges attached to overdrafts.

A ruling from the Office of Fair Trading has indicated that the charges, which can reach £39 for bouncing a cheque or direct debit, amount to an illegal penalty.

Banks will charge customers as much as £39 for going beyond their
overdraft without permission, and slap on a further charge of around £25 for
every direct debit or transaction that is then bounced or allowed to go through.

On top of this, the banks will charge an interest rate of close to 30pc on unauthorised overdrafts. The charges can often send the customer overdrawn again, plunging them into a spiral of debt.

These charges are feeding record profits of a combined £34bn at the big five banks - Barclays, HSBC, Lloyds TSB, RBS-NatWest and HBOS.

As a result, hundreds of thousands have launched claims for a refund of these charges going back over six years. Many of them are choosing to switch banks as a result. And even if they choose to stay, the banks often take revenge by shutting their accounts.

The big five banks, such as HSBC and Barclays, have been offering big incentives to new customers.

At one time Halifax was offering those opening a new current account a payment of £100.
However, it had to close the scheme early because it quickly signed up all the new accounts it was expecting.

The research by MoneyExpert, which was based on a survey of 2,374, also found that the number moving to a different personal loan provider is on the rise.

Just under half a million more said they had moved to a different loan provider in the past six months, compared to a survey conducted three months ago.

Chief executive of MoneyExpert, Sean Gardner, said: "Banks and building societies are feeling the pain as current account fees come under scrutiny.

"Customers are getting the message that you don't have to just sit there and take it. With banks under threat for overdraft fees, they are the ones feeling the pinch at the moment.

"These days people just won't stand for poor service or for uncompetitive deals." Overall, credit cards remained the hottest area of switching activity for bank customers. Around 14 per cent of respondents said they had moved their plastic provider in the last six months.

The research found that electricity and gas providers are witnessing a similar trend. Some 16 per cent have changed electricity company and 14 per cent their gas supplier in the past six
months.

To help get back your money from the corporate thieves, sorry I mean high street banks there to help us you can use this: Sample Letter Template(Right click this and save the file) or to view copies of the Daily Mail letter templates you can edit to include your own details and print off, click HERE (opens new window).

The Daily Mail has been running a rather good campaign about this.only has a maximum 40 days to respond. If you don’t get a reply, follow up with a phone call and then report it to the Information Commissioner for a breach.

Halifax customers call in bailiffs:http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=446766&in_page_id=1770

Tags: Bank Charges, Banking, Information Commissioner, Charges, The Financial Ombudsman

previous bits: http://newportcity.blogspot.com/2007/04/bank-charges-dont-let-them-rip-you-off.html

http://newportcity.blogspot.com/2007/03/barclays-bank-barclays-pay-bob-diamond.html

http://newportcity.blogspot.com/2007/03/barclays-bank-bbc-undercover.html

http://newportcity.blogspot.com/2007/02/banks-bloody-parasites.html

http://newportcity.blogspot.com/2007/02/banks-make-change-its-worth-it.html

http://newportcity.blogspot.com/2007/02/cry-freedom-escape-from-barclays-bank.html

http://newportcity.blogspot.com/2006/11/open-reply-to-lloyds-tsbdue-to.html

http://newportcity.blogspot.com/2006/11/barclays-bank-kind-humanitarians-help.html

http://newportcity.blogspot.com/2007/02/my-humble-opinion-on-barclays-bank-plc_07.html

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