Banks - The latest con on customers - Charging for accounts.

Now that customers have started to claim back illegal charges imposed by banks, charges that they have not defended in court on one occasion they are now throwing a collective sulk and threatening to fuck over, sorry help customers by charging them a fixed fee for their account.

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

Posted the article that I spotted in The Guardian online.
http://money.guardian.co.uk/saving/currentaccounts/story/0,,2066572,00.html

Current accounts costing £200 a year could become the norm after the Office of Fair Trading launched an inquiry into whether bank and building society penalty charges were subsidising "free" banking.

--So lets see the record profits posted by banks were all down to Mr & Mrs customer paying the bank £30 for going overdrawn and then incurring another charge (or charges) later on in the month when the bank reject their direct debits and charge them for the privilage. So they are claiming that without illegally charging people we won't have free bank accounts. If that is the case then I think I smell extortion, or maybe its just plain b/s

The OFT said customers might benefit from up-front fees if the move brought greater transparency to current accounts. It said a lack of transparency about fees and interest rates led to a lack of competition and prevented customers from judging if it was worth switching to a rival bank.

-- Gee thats nice of the OFT, talk about a half baked decision. One would think that the banks should do their jobs properly in the first place and they should have lambasted the banks for not doing that in the first place. Now you would assume that something called The Office of Fair Trading would represent consumer interests, but they appear to have been neutered by the meddling from government ministers over this.

Some banks have imposed charges on current accounts, most notably First Direct. It charges £120 a year unless customers transfer £1,500 a month into their account or use another product. Most banks have also introduced so-called package accounts, costing upwards of £200, which include "free" travel insurance and car breakdown cover.

--Well its hardly free if its included as part of a package is it? The rest of the mob of thieves, sorry helpful banks on the high street are watching this closly to see how customers react. Still one can but hope one bank will buck the trend and put customers first, a vague hope but you never know.

The OFT review will examine whether competition would be improved "if there were a shift away from the widespread provision" of free current accounts.

--Ok run that by me again, charging for accounts is going to maybe improve competition in the marketplace, make things better for us? Somehow I doubt that. Better for the banks but not the over charged customers. Maybe we can hope for a service without constant mistakes, are you listening Barclays?

Consumer groups welcomed the investigation, but questioned whether the banks could justify ending free banking when the big five banks alone made profits in excess of £35bn last year. They said delaying a decision on whether to cap bank charges had also left millions of customers to battle in court to reclaim charges.

--Thirty five billion and still the consumer is being charged illegally. Also that figure does tend to contradict their statement that they can not afford to run free accounts for customers.

Banks have come under pressure to cut charges on unauthorised overdrafts. Campaigners allege that millions of customers have been unfairly charged by banks using rules in the small print.
Citizens Advice said in one case a man in Surrey who went 20p overdrawn after a direct debit payment faced charges of £300 and the threat of court action. Other customers have been hit with charges of £800 or more. The charity said: "Bank charges have a disproportionate effect on people on low incomes; one charge may be enough to push them into the red and keep them there."

--Lets see the banks defend this, especially when their own errors often cause the charges. This policy of the banks, hits the poorest in our society the most, yet the silence from the government over this is deafening.

The OFT aims to publish the findings of its study by the end of the year but did not rule out a referral to the Competition Commission should it need to impose tough sanctions on the banks.
Some observers said they doubted the review would lead to a crackdown. They pointed out that the OFT had already spent a year looking at bank charges only to declare that it needed more time and a wider remit.

--Dont hold your breath waiting for the OFT, they are a toothless talking shop, a bit like the FSA that oversees financial products. Pressure is being put on the government by the banking lobby - a powerfull force in UK politics.

Moneysupermarket.com, a financial website, said: "This looks like the OFT is backtracking, having belatedly realised its announcement to investigate bank charges was premature and that it had created an expectation among consumers of lower fees to come - unlikely to be fulfilled now the banks have threatened the withdrawal of free banking."

--The banking lobby has powerful friends, for instance a certain Mr G.Brown and T Blair for starters.

It pointed out that the British Bankers Association, which represents high street banks, appeared unfazed by the review.

The BBA said: "We are pleased the OFT recognises the issue of bank account fees needs further consideration and is more complex than it had initially believed."

--Makes you proud to see British business robbing British customers and a Labour government sitting back doing nothing but pass the buck.

Ah well at least Barclays are being investigated over that BBC program, well thats a start:
http://www.silicon.com/financialservices/0,3800010322,39166896,00.htm

http://newportcity.blogspot.com/2007/04/bank-charges-record-numbers-changing.html
http://newportcity.blogspot.com/2007/04/bank-charges-dont-let-them-rip-you-off.html
Link to BBC News: http://news.bbc.co.uk/1/hi/business/6476155.stm
Ye olde links to previous bits: Previous bits on Barclay's and some tags:http://newportcity.blogspot.com/2007/02/banks-bloody-parasites.html
alsohttp://newportcity.blogspot.com/2007/02/banks-make-change-its-worth-it.html
alsohttp://newportcity.blogspot.com/2007/02/cry-freedom-escape-from-barclays-bank.html
also:http://newportcity.blogspot.com/2007/02/barclays-bank-still-cunts-even-now-i.html
check out this site. http://www.chargeclaims.co.uk/
http://newportcity.blogspot.com/2007/02/cry-freedom-escape-from-barclays-bank.html
http://www.blagger.com/db4/company_id/130/companyname/Barclays.html
http://www.litsl.com/miscellaneous/poor_customer_service/barclays_bank_barc_the_woolwich.html
http://www.ciao.co.uk/Barclays_Bank__Review_5133047
http://www.teneric.co.uk/forums/finance-forum/business-banking-complaints-4719.htmlhttp://www.grumbletext.co.uk/vt.php?t=108http://www.barclaystory.com/
and lastly: http://newportcity.blogspot.com/2007/03/barclays-bank-barclays-pay-bob-diamond.html
Tags: Bank Charges, Banking, Information Commissioner, Charges, The Financial Ombudsman

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