The Moleman
First team captain
Joined: 10 Jan 2005
Posts: 1420
Location: On my arse in Stamy B!
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 Posted: Sat Mar 10, 2007 10:36 pm Post subject: More money-grabbing b******s |
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Was reading this and thought that some of you could be caught by some of these sh**ty little schemes. So watch out people.
From The Independent online:
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Banks have begun introducing a range of "stealth" charges that will make them millions of pounds as they recover from the financial sting of the mass revolt against penalty fees.
Within months, thousands of current account customers will find that they have been switched from free accounts to ones with annual fees. Credit card users are being levied new one-off payments and paying higher rates for withdrawing money from cash machines. Institutions have also been hiking the cost of loans, even though the Bank of England has kept its base rate stable for two months.
Banking experts warn more charges are likely this year as soon as banks digest the looming verdict of the Office of Fair Trading (OFT) on fee levels. They suggest customers scan their bank statements for any "sneaky" new fees.
Since The Independent began its campaign three weeks ago, the rebellion against illegal bank charges has gathered pace and two million template letters have been downloaded from campaign websites.
The new charges introduced by Lloyds TSB and other high street banks will help make up the millions they are losing because of the over-charging scandal that has sullied the industry's reputation.
Penalty fees of about £35 for unauthorised overdrafts and bounced cheques, charged for years, are now widely regarded as illegal and customers who threaten court action are obtaining refunds.
Credit card customers can also claim money back after an OFT ruling that late payment fees should not exceed £12. Demands may also be made for repayment of mortgage exit fees if they exceed costs, reckoned to be about £65.
Banks and building societies are already estimated to have paid out £50m to disgruntled customers.
Although not publicly linked with the fees revolt, high street banks and credit card companies have been increasing fees and charges in recent weeks.
Eight lenders have increased rates on personal loans in the past fortnight, by about one to two percentage points and, in one case, by 7 per cent. They include Alliance and Leicester, the Halifax's IF, Lloyds TSB, Mint and MBNA.
Among the new charges, Lloyds is charging credit card customers a one-off fee of £35 this month for putting too little on plastic. It is estimated the bank will make £1.7m from the one-off fee, which will affect 51,000 customers.
Consumer experts fear the charge will "open the floodgates" to other providers to penalise prudent but unlucrative borrowers.
Citibank is moving current account customers from a free service to a new one charging a fee, even though it is also introducing a new free account.
The bank - which has one million customers in the UK - has given 60 days notice of the £10 monthly fee from 1 May.
Nick White, director of financial services at uswitch.com, feared other finance houses might follow the move. He said: "Our message is that people need to remain one step ahead of the banks as this is one of many pre-emptive moves we will see the banking industry make prior to the OFT's impending current account investigation."
People with a mortgage, savings and current account, a loan and a credit card are now subject to about 110 different charges, according to one survey.
Andrew Hagger, of Moneyfacts, said that more fees were likely to be introduced in coming months. "Because you are going to take a revenue stream away from the banks they are not just going to sit and take it. They're going to react and try to fill that gap," he said.
The people-power campaign has shed light on the controversial practices of many banks. Institutions have been accused of trying to avoid full refunds by delaying, offering partial settlement and closing accounts. Hundreds have complained to the Information Commissioner's office about the response to requests going back six years - the claims period.
Meanwhile, the profits of the leading nine high street banks have surged by 33 per cent to £40bn, according to recent financial results.
MPs on the Treasury Select Committee this week announced an investigation into banking. Professor Philip Molyneux, professor of banking at Bangor Business School, predicted free banking could end in the next few months. "I think it's quite likely," he said. "It's not 'free' of course because they are getting your money in a current account and earning interest but I think in the longer term almost certainly they will charge."
Stuart Glendinning, managing director of moneysupermarket.com, said: "Providers are desperately raising fees. It's accelerating."
Clawing it back
* LLOYDS TSB
Introduces charge of £35 for people who use credit card infrequently. Personal loan rate up half a per cent
* ALLIANCE & LEICESTER
Jump of 0.4 per cent in loan rates in past two weeks
* BRITANNIA BUILDING SOCIETY
Mortgage exit fee up from £75 to £110 in January
* CITIBANK
Charging £120 a year for current accounts from 1 May
* MINT
Loads up to 1 per cent on to interest for personal loans
* NORTHERN ROCK
Loan rate rises 0.3 per cent to 6.1 per cent in January
* MORGAN STANLEY
Raising fee for foreign purchases on credit cards from 2.75 per cent to 3 per cent from April
* MBNA
Introduces charge of £10 for credit card users in credit last month. A 7 per cent rise in interest rates for personal lending, from 7.9 per cent to 14.9 per cent.
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Students deserve discounts for EVERYTHING!
"the clever...boring arrogant c**t" Keep the fanmail coming!
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