Personal Finance. How Is It People Are Getting Banks To Refund Charges On Unauthorised Overdrafts?
Personal Finance. My Brother Has Just Got £6000 From His Bank Which Represents Bank Charges. I Can't Understand How It Is That A Time Where Most Peop
Personal Finance : How Is It People Are Getting Banks To Refund Charges On Unauthorised Overdrafts
My brother has just got £6000 from his bank which represents bank charges. I can't understand how it is that a time where most people have access to the internet, why they can't do as I do and monitor their accounts preventing them to go over their agreed over-drafts. I don't have an overdraft and (even if it means not being to buy food) have not been overdrawn for some years. I even know people who regularly go over their overdraft to pay for holidays, clothes and to finance their social lives. Thanks for your postings. I still think that if people monitored their accounts mor often they wouldn't go over their overdrafts. ~~~ COOKIE ~~~
Best Answer To Personal Finance Question
Whilst there are people who abuse their overdraft, its not always the case. For example, if someone bounces a cheque on you, it can cause you to go overdraft limit - Is this your fault? No Alternatively, a company takes a direct debit earlier than they should, all their mistake, but you get charged none the less. So its not always your fault that you get bank charges. Its also unfair if you miscalculate your finances, and go slightly over your overdraft, causing a number of charges on the same day. Sure one charge is fair, as its your fault, but many people get hit with 3 or more charges totalling around £90, all for the one mistake. Its also down to the banks being greedy. They are not allowed to charge the amount they do, as the cost they charge can only reflect their own costs. If they charged £5 say, they would still make a profit, and people wouldn't be able to claim the money back. Just wanted to show that their is another side to this!
All Answers To Personal Finance Questions
Answer 1Sometimes people simply cannot pay the payment, its not just overdrafts, its credit cards and current accounts. i was at uni and couldnt make payment so they charged me n i got my money back as they cant prove how there charged equate to manual labour.
Answer 2Whilst there are people who abuse their overdraft, its not always the case. For example, if someone bounces a cheque on you, it can cause you to go overdraft limit - Is this your fault? No Alternatively, a company takes a direct debit earlier than they should, all their mistake, but you get charged none the less. So its not always your fault that you get bank charges. Its also unfair if you miscalculate your finances, and go slightly over your overdraft, causing a number of charges on the same day. Sure one charge is fair, as its your fault, but many people get hit with 3 or more charges totalling around £90, all for the one mistake. Its also down to the banks being greedy. They are not allowed to charge the amount they do, as the cost they charge can only reflect their own costs. If they charged £5 say, they would still make a profit, and people wouldn't be able to claim the money back. Just wanted to show that their is another side to this!
Answer 3I manage my finances well, just went over my overdraft once in six years cost me £30! Not my fault, bank refunded charge as it was not legal, and did not represent a fair charge as they did nothing! My sister manages on a meagre amount of money and paid money into her bank and then through pay pal for a laptop for her daughter. The payment sat in limbo somewhere for a week and was then debited again, this caused her bank account to fly into overdraft and the charges into unauthorised overdraft! Not her fault
Answer 4This is such a great question. I agree some people don't monitor their accounts that often. I strongly believe a customer should keep a ledger balance and always compare that with what the bank has. The tricky part is that when a customer makes purchases, if they use POS (enter their pin number) or atm withdraws, the item is pending and deducted from the balance. However, if they use the checkcard (credit, visa, master, etc. ) it's reflected that same day, however it can take anytime within three days to post to the account. Well I just wanted to let everyone know this!!! Very important!!!
Answer 5The idea of claiming back bank charges is because the banks are not supposed to make a profit from charges. They charge you £25-£34 for going over your limit or having a cheque or Direct Debit bounce, when it actually costs them between £ and £. I agree with you that there are people who use their overdraft in an irresponsible manner, however if one small mistake means you incur, say, a £30 charge, this can spiral into much more than this. For example, if you are charged further for being over your limit for more than 4 days, or if you have a Direct Debit bounce because the £30 charge means that you don't have the funds in your account to pay the bill. A £30 charge can easily become 3, 4, 5, or more times the original amount for the sake of going overdrawn by a few pounds. If the charges were more in line with how much it costs the bank, then in my opinion it would be less likely that the charges will continue to mount up and become impossible for the account holder to repay that money.
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