OFT to investigate bank charges: should I be cynical or optimistic?

[Zak33]

Imagine if Paypal takes over the world pf banking.

Then we can all be very very scared.

[TheAnimus]

I'm not sure "punish" is the word I'd use, but if you utilise a facility or service, it's reasonable to expect to pay for it ... one way or another.

First off, i'm been hypocritical, when i was a student the 'free' 1k overdraft, that was completely intrest free, for as long as i bank with them got me. It was spent on a mix of beer, computers, and tesco wine for student grade dates Let me cook dinner for you, here have some wine with your pot noodle.

now that squandering was stupid, it left me with very little money for an emergancy or to cover me in the case of a cheque taking the whole 5 days to clear etc.

if you live perminantly in your overdraft, but you're earning enough money, the bank will extend it, but charge you intrest at some point. If you've strayed into living in the intrest section, you sir, are a fool. Cut back, live on toast, get back to the black (or intrest free red). You should be able to be pushed into the red without a major problem outside of your control (work paying late, rent/mortgage going early). If you live always in it, you've got no where to go, when life deals you a blow (layed off, etc) you will really feal the pain.

If its a case of a bank not offering you an overdraft, then frankly they probably have a damn good reason, again you should cut back and save enough to give you a buffer zone.

I think people should take the fine as almost a wake up call, make sure their finances are in order so that a cheque taking a week to clear dosen't leave you up the smelly creak without a paddle. Worked for me.

Or you could behave like children, claim you've done nothing wrong by taking money thats not yours, without asking for it.

[grayg1]

Imagine if Paypal takes over the world pf banking.

Then we can all be very very scared.

If only I could reverse charge my taxes

[Nick]

Saracen, yep, you've pretty much nailed my position on this.

By all means charge me, but charge me a reasonable amount, not some exorbitant 'fee' plucked from out of thin air and the wish to turn a quick profit.

And I'm sure 'punish' is the wrong word to use too... though I'm very sure that many people stung by these charges feel that it's a punishment... and an unfair one at that.

[Betty_Swallocks]

This is the point. I'm not objecting to a charge, but it must be a reasonable one reflecting the costs the bank incurs.

If it really costs Nat West £38 for their computer to reject a payment and trigger the automatic printing and posting of a letter then I would suggest they should take a close look at their IT systems. It should not be a punishment but a recouping of costs incurred. After all they will be charging interest on the overdraft as well.

Also a certain level of common sense should be involved. A charge should not be able to put the account further overdrawn than the failed payment would have done.