The Banking Industry - Charging Malpractice

[trout]

Interesting article:

 

Beware the £400m credit card interest fiddle

[Njugle]

A small banking anecdote.

 

Many years ago i had 2 credit cards, both seldom used, one which earned money if used and one that cost money if not used, the latter being a VISA from the BoS. I stopped using it years ago, but kept it for a spare in case of emergency, and eventually they contacted me suggesting they cancel it upon renewal date due to it's inactive status, which they did. About three years passed, and then suddenly i got a letter asking me if i wanted to use it again, which i ignored. A week or so passed and i got my shiny new card, a mastercard at that, in "replacement" of my former VISA card (?). The card required activation, which i also ignored, and despite that i am now getting monthly statements with "0.00" on every bottom line.

 

Pushy beggars ain't they. I'm now trying to think up more things that i don't need or want that they will magically manifest for me without my asking.

 

Next i am expecting someone to call me, offering to spend money from the card for me, and then when i ignore them too they will go ahead and spend something anyway.

[BigMouth]

My banking anecdote

 

Without fail Abbey National (now Abbey) would send me an offer every month for a bank loan. It was always the same amount £10,000, but it was guaranteed.

 

One day I decided to go ahead with the offer so I went into my branch and told them that I always tossed the offer in the bin but would like to take up the offer now. It turned out that it was cheaper to apply online so off I went to find the Interweb.

 

I was attracted by the APR of 6.9 - 13.9% (6.9% typical). Being a typical man (curry, farting, burping etc.) I expected to get the 6.9% rate. I applied and it was all OK'd within 10 minutes. They would send me a letter which I would sign and my account would be credited with the money.

 

The letter arrived 2 days later but the APR was 13.9% so I tossed the letter in a drawer, deciding not to take up their kind offer, but I dropped them a line to confirm so that there was no mistake.

 

It's funny how you suddenly become their best friend and they want to ring up and talk to you about the decision.

 

They explained that the interest rate was based on risk and were quite surprised when I took offence to that. They haven't offered me a loan since

[Fjool]

Man recovers £35,988 from NatWest

 

A businessman from Norfolk has recovered a record £35,987.94 from NatWest after accusing it of charging him unlawful overdraft fees.

[Fjool]

More reports of banks trying to wriggle out of their corner, and failing.

 

http://newsvote.bbc.co.uk/1/hi/business/6595667.stm

[Scoobysue]

My bank (RBS) just tried to pull the charges stunt. Don't know yet if they've been successful as I phoned to query it and the person I spoke to said she'd get back to me today to let me know if they 'could waive it'.

 

Am wishing I'd paid more attention to all the talk of bank charges instead of thinking 'boring - never happened to me, never will happen to me'!

 

Since I posted this - the bank phoned back and they're waiving the charge, bla bla bla. No explanation or anything but I guess they'll not be sending me any more notices of impending charges.

 

The downside is, they're obviously still trying to fleece people with spurious bank charges so the fuss in the media, etc. hasn't made the banks clean up their act at all.

[BigMouth]

I have written to the Money Programme - BBC Radio 4 (showing my age now!).

 

I have got thoroughly peed off with Abbey building society recently. The latest fiasco ir spending 4 days and 20 calls trying to get through to their Visa Dispute Line. I bought something that was not as advertised and the seller has decided that the best way to deal with it is to ignore me - oh dear, what an error

 

I want a refund and legally I am entitled to one, but if no-one will pick up the phone on the VD Line I am a bit stuffed. So I asked them to send me a claim form through their online web form. Apparently they don't have that facility. WTF does that mean? No envelope, no stamp, no form, what?

 

I complained bitterly so they are going to "investigate".

 

Whilst I am in rant mode ......

 

MBNA. What a bunch of tossers they are. They kept nagging me to adminster my account online "for full management opportunities". Eventually they wore me thin and I registered. First thing thing that I wanted to do was cancel my monthly credit card insurance. Could you do it online - er no! So I rang them up and asked where I could do it online. Obviously you couldn't, although you could spend thousands so I asked them to cancel the insurance, and whilst you're about that you might as well close the card too I told them. Not much good if I can't manage it online I told them

 

Rant mode off

 

....aahhh that feels better

[Colin]

Couldn't find the old thread on Bolts Cash machine so, I'll try here instead.

 

Has anyone else noticed that the ATM at Bolt's is no longer a Bank of Scotland ATM but now belongs to some faceless money grabbers who want £1.99 to let you get at your money?

 

Just to keep this on topic.

Does anyone else agree that the banking industry is guilty of malpractice by selling franchises to these machine operators?

I might have this wrong but I believe that far to much money is charged for these services.

Does anyone have an idea of the 'business model' that is applied?

It was explained to me some time ago that any business can apply for a franchise (paid for of course) to operate an ATM via a link scheme.

After that, they pay a fee/percentage (not sure) of the value of each transaction to the parent bank who then, proceed to charge the account holder for the privilege of accessing their money via a third party.

Seems to me that the bank gets to charge you twice for granting access to your money this way. If that isn't a malpractice, what is..

 

Additionally, someone who has absolutely no connection with either yourself or your money also takes a bit off the top..

 

Anyway, gripe over for now except to say that I will NEVER use the ATM at Bolts again.

[Styles]

I have not been at the Bolts ATM for ages as everytime i go its not working or out of cash, but if you now have to pay I wont ever be going again either!

[BigMouth]

^^ Hopefully everyone else will vote with their feet too and go elsewhere.

 

The banks make me smil. They really don't want you to use their High Street branches as it is costly employing staff in them, but they want to charge you to withdraw the money once your choice in the High Street has been removed!

 

There is always the JCB option for cash removal!! Only joking!!

[JustMe]

Thanks for the warning........I will be avoiding the Bolts atm in future. And I suspect that the Sound Service Station atm will have gone the same way.

 

Is it right to charge for use of pay as you withdraw machines. I think I will say a sort of guarded yes to that. If, for example, Mainland's shop was to provide a cash point for their customers I think it is reasonable for there to be a charge as long as it was clearly shown that a charge would be made.

 

Maybe time to remind people that many post offices allow cash withdrawals from certain accounts.

[Twerto]

So bolts is goign to go from the most used atm in shetland to the least used..

i bet it is still empty 4 days of the week

[BigMouth]

Has anyone considered the extra side-effect of all that traffic making its way to Da Street?

 

All those drivers leaning out of the window to use the ATM. Should be interesting at the Clydesdale!!

[tlady]

I for one wont be using the Bolts cash machine if its gone private!!

 

On holiday last summer we stopped at a petrol station and I went to use the cash machine inside. I didnt want to carry too much hard cash so was only going to take out £30, but when I saw they were going to charge me £1.65.... I thought I would make it worth my while.. and asked for £100.

 

Wrong move..... only £40 came out !!! with the statement showing a £100 withdrawal!

 

Needless to say the staff had the "its not our machine" attitude but did give me a number to phone.

 

I was told I'd have to go to my own branch to notify them and fill in a form, which I did, and was told it could take up to 6 weeks to come through!...

 

3 weeks later I got a letter from my Bank saying the company had checked their machine and their statements and it balanced! so I wouldn't

be getting a refund !!!

 

3 months later... after quite a few heated phone calls and the threat of legal action.... I eventually got my money back plus the £1.65 charge.. gee ta ....never again.....

[trout]

Couldn't find the old thread on Bolts Cash machine so, I'll try here instead.

 

Has anyone else noticed that the ATM at Bolt's is no longer a Bank of Scotland ATM but now belongs to some faceless money grabbers who want £1.99 to let you get at your money?

 

Just to keep this on topic.

Does anyone else agree that the banking industry is guilty of malpractice by selling franchises to these machine operators?

I might have this wrong but I believe that far to much money is charged for these services.

Does anyone have an idea of the 'business model' that is applied?

It was explained to me some time ago that any business can apply for a franchise (paid for of course) to operate an ATM via a link scheme.

After that, they pay a fee/percentage (not sure) of the value of each transaction to the parent bank who then, proceed to charge the account holder for the privilege of accessing their money via a third party.

Seems to me that the bank gets to charge you twice for granting access to your money this way. If that isn't a malpractice, what is..

 

Additionally, someone who has absolutely no connection with either yourself or your money also takes a bit off the top..

 

Anyway, gripe over for now except to say that I will NEVER use the ATM at Bolts again.

 

^^ This isn't the way that it works.

 

About 20 odd years ago the LINK network was set up so that smaller banks and building societies could compete against the big boys i.e. joining LINK allowed their customers to withdraw their money whereever an ATM was joined to the network.

 

Any fees between banks in the "interchange" network of ATM's are paid between the banks - it isn't money from your account.

 

... Now ... there are "free" LINK (bank owned) ATMS and there are (bank owned) "pay to use" ones. The pay to use ones will state that you will be charged before you extract money from it. You will pay for this from your account. This money is taken by the LINK network as far as I understand as part of the interchange fee.

 

There are no free ATM's anyhow! There are charges on every transaction + mainenance etc. that is clawed back through other charges etc. etc. throughout the banks banking processes.

 

Now on the side of all this are "private firms" who own and manage a network of ATM's that they link to the LINK network. These are the machines that charge you extortionate rates to extract your money from your acount across the LINK network.

 

It's not a franchise - the banks have sold the machines to these companies. The upkeep of ATM's is a horrendously expensive and labourious task with absolutely no thanks or "profit" - hence banks started offloading them to be financed by the private sector.

 

The rules of the LINK network state that these private firms can't charge a fee as part of the interchange from the card issuers (the banks) - this is why they charge you directly!