Battenberg Posted February 22, 2006 Share Posted February 22, 2006 I've had my bank statement this week and it's listed the increase in its charges. Quell suprise! it's Barclays. Also I had a letter from a credit card company announcing that their charges for balance transfers will be increasing from 2% to 3%. This might not be a huge increase, obviously depends on how much you're transferring but I can't actually recall having had this particular notice of increase from a credit card company ever. These might be for small amounts but it all feels significant to the bigger picture after all 'every little hurts'. With an increase in council tax, gas and electricity prices and now these little extras surely it's going to be like a dripping tap for some people which eventually turns into a pool. Has anyone else seen evidence of these increases lately? Are the credit card companies starting to tighten up? Will these increases effect 'affordability' over time and reduce borrowing? Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 My high street bank charged me £168 last month for various dealings. A massive hike in charges. I can't help feeling like they are trying to claw some returns for the balance sheet. I posted the above this morning. I believe this show direct corrolation to the rise in insolvencies. So my bank wants me to pay for these financial morons and their own unscroupulous lending. I should also point out I withdraw everything from this bank and maximised all of my free credit. My bank manager showed some concern when I told him "I had no choice but to freeze all my accounts at maximum free credit until inflation eroded £168 from the debt. Thus making us quits again." I have lost all trust in high street banks. Quote Link to comment Share on other sites More sharing options...
beenhearingthisforyears Posted February 22, 2006 Share Posted February 22, 2006 I posted the above this morning. I believe this show direct corrolation to the rise in insolvencies. So my bank wants me to pay for these financial morons and their own unscroupulous lending. I should also point out I withdraw everything from this bank and maximised all of my free credit. My bank manager showed some concern when I told him "I had no choice but to freeze all my accounts at maximum free credit until inflation eroded £168 from the debt. Thus making us quits again." I have lost all trust in high street banks. Just as retailers build into to prices a % towards shoplifting, the banks are charging their "regular" customers a form of "tax" towards those in debt who walk away and declare themselves bankrupt.....and still they hand out the 0% cards...... Quote Link to comment Share on other sites More sharing options...
pyewackitt Posted February 22, 2006 Share Posted February 22, 2006 Lol - why expect banks to take with one hand and give with another when they are quite happy (and now due to huge debts quite well positioned) to take with both! The banks are just another form of business... and because they have lent without foresight they must recoup losses elsewhere. What we need is a new bank which only accepts solvent savers and doesn't do loans... it won't make them a fortune from bad creditors but it will mean they keep a happy customer base. - Pye Quote Link to comment Share on other sites More sharing options...
CaptainClamp Posted February 22, 2006 Share Posted February 22, 2006 Just as retailers build into to prices a % towards shoplifting, the banks are charging their "regular" customers a form of "tax" towards those in debt who walk away and declare themselves bankrupt.....and still they hand out the 0% cards...... Hmm, shouldn't risk in lending be reflected in rates, rather than transaction charges and fees? Would it be more damaging to their business to charge realistic rates or to not lend to subprime borrowers rather than skewing fees? Seems like a failure of free markets to me Quote Link to comment Share on other sites More sharing options...
stillill Posted February 22, 2006 Share Posted February 22, 2006 FirstDirect have started creeping charges - £2.50 for their text message services, which used to be free for one weekly statement which IIRC they wrote to me about six months ago saying "this will stay the same - but if you want more than that, we'll charge". Then about a month ago the wrote similar again, I thought it was just a reminder. Then they took £2.50 out my account and said "we wrote saying we'd charge for it". Cue the opening of a Lloyds account with the £50 bung and all my money leaving FirstDirect. (I need a change anyway, I'd become complacent and had my first late-payment charge ever on my CC of £25. Was my fault completely, but made me cut up my card all the same. Can't be risking that again.). Will laugh when I move all my money out of FD current account the day my bonus goes in... Quote Link to comment Share on other sites More sharing options...
gasket37 Posted February 22, 2006 Share Posted February 22, 2006 a couple of months ago someone i know in business renewed his overdraft... ...it cost him £800 Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted February 22, 2006 Share Posted February 22, 2006 I don't see this as any different to gas, council taxes, television liscences etc. A bank is an essential service (since you generally can't get paid without one). The government is effectively in league with the banks to make people pay more for less, since it has little if no regulation that the banks don't want (eg. limiting the amount of credit to an individual to the amount that they can repay would be a good start. It wouldn't have to apply to businesses). They just palm it off to self-regulation every time. Note the charges on bounced cheques. Used to be nothing on the bouncee side. Then they whacked on a charge and it has been going up ever since. The cost of essential services have risen exponentially over the past 10 years and banks are no different because they appear to operate as a cartel. Free Country? Quote Link to comment Share on other sites More sharing options...
By-Tor Posted February 22, 2006 Share Posted February 22, 2006 About a month ago i noticed that the interest on my cc (paid off every month anyway) had increased by approx. 1% per annum. Also the lloyds online saver account had dropped (in a letter the same day). Albeit by only a small amount but for every £1M held in these accounts they save £1K for every 0.1% reduction in the interest level. And the cc company will be making an extra £10K per £1M of debt. Slowly slowly catchy monkey, the credit noose is tightening without the MPC intervention of upping the base rate. Quote Link to comment Share on other sites More sharing options...
BillyShears Posted February 22, 2006 Share Posted February 22, 2006 Lol - why expect banks to take with one hand and give with another when they are quite happy (and now due to huge debts quite well positioned) to take with both! The banks are just another form of business... and because they have lent without foresight they must recoup losses elsewhere. What we need is a new bank which only accepts solvent savers and doesn't do loans... it won't make them a fortune from bad creditors but it will mean they keep a happy customer base. - Pye How will this bank make sufficient money to stay in business? Billy Shears Quote Link to comment Share on other sites More sharing options...
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