Bank complaints at record high

  MichelleC 09:10 20 Feb 07
Locked

The high street banks reveal record profits of £37 billion while customer complaints soar to an all-time high.

The complaints to the ombudsman have hit a new record of 16,000 this financial year.

I've just changed banks because they want to charge £10 per month for a current account.

  Z1100 11:07 20 Feb 07

How does that work then? I don't pay any bank for my pension so I fail to see how their profit will affect my pension. I was under the impression that the 'Top 100' had more to do with that.

And not 7bn, only 1.2bn, ONLY! well that's a big number too. I don't mind what I pay for banking I stay in credit. I do wonder how much of that 1.2bn comes from the low income and no income segments of society.

And yes, I do accept if you are in debt it is mostly your own fault. The problem is, once you are in debt it is never easy to get out.

Hanx!
K.

  MichelleC 11:33 20 Feb 07

...But, £37 billion in profits does not mean we've eached been 'ripped' off to the tune of £672. It means yours and my pensions are stronger because we have efficient banking companies who can go out into the world and compete for corporate business against any other country's banks...

Your pension maybe but not mine and millions of others. My private pension lost a third of its value. One third was totally wiped out.

My local branch of HSBC is now only open 3 days a week and its subsidary First Direct is one of the first to charge for a current account. That's why I'm leaving them after 20 years.

It seems as though this move by the banks to charge for current accounts is to compensate for all the people having retaliated by reclaiming all the times they've been overcharged for bank and penalty charges.

  Watchful 14:06 20 Feb 07

one thing I have no problem with as I have only had to complain to my bank once in too many years to remember. Barclays is the name.

  RuthW 09:22 21 Feb 07

I think it is Barclays who are one of the worst offenders out of all the banks which collectively make £4.7 billion a year from 'illegal' charges.

The OFT are investigating these overcharges and will decide next month whether to force the banks to impliment fair charges.

Consumers are becoming more astute than they were years ago and I'm pleased customers are fighting back.

  georgemac © 13:33 21 Feb 07

If my bank tries to charge me for current account banking I will move to one which does not - I cannot see this happening on a big scale as first direct have lost loads of customers already

I am always in credit and get free banking and am happy with this

Bank charges are too high in my opinion for those that have to pay them, we all pay in one way or another as these charges add to business costs and we all buy things

Barclay profit margin was over 30% which is very high

  n4165si 14:51 21 Feb 07

georgemac ©
i remember Barclaycard installing a £10 charge for holding their card, i just tore it up, they soon abandoned the idea, after all they do make up to 2% off the transaction anyway,i dont think they will repeat it,or will they ?

  BT 08:18 24 Feb 07

Just had a result from HFC Bank.
I received my Orange Marbles Credit card statement last week and they had added an interest charge even though I had paid off the whole amount.
I called the 0870 helpline number and after inputting card numbers/DOB etc I was finally connected with the Mumbai Call centre ( Who answered with "Wannadoo Marbles"- 8 months after the name change!) and after carefully explaining the problem several times to the Indian lady she then told me that she couldn't help me today as the computer was down and could I call back the next day. It was difficult not to be too rude to her and I slammed the phone down.
I then remembered that I could access my account online so I logged on and left a message recounting the above.
On checking my account yesterday I found that not only had they refunded the interest charge but had credited a £5 ex gratia payment. - Result!

  Forum Editor 08:34 24 Feb 07

have been acting vindictively in response to the spate of people who have reclaimed allegedly illegal bank charges, and have issued many customers with notice that their accounts are to be closed. It's difficult to understand the kind of small minds that are behind such retaliatory actions, which do the banking industry's public image no good whatsoever.

I have no problem with the banks making big profits - international money lending is a high-risk business, and if our banks can compete successfully in those markets, good luck to them. I recall being taken to the Hong Kong club by a client once, and being introduced to a man who worked for my bank. He was there to close a deal in which my bank was lending an airline $10 million as part of a consortium, and over lunch he explained a little of what he did for a living. I began to realise just how complex and risky that aspect of banking can be.

he problem is that most of us see the big name banks purely from a personal banking point of view, and their public image depends to a large extent on that aspect of their business. There's work to be done in that direction, and juvenile 'If I can't get my own way I want my ball back' attitudes aren't going to help at all.

  jakimo 13:07 24 Feb 07

Banks who have had legal proceeding issued against them by customers for alleged excessive overcharging their accounts have declined to defended the claims against them.

Rather than try and justify their excessive charges in court every summons to date has been settled out of court at the last minute, saving them the embarrassment of having to explain how these unjust charges are arrived at.

  Kate B 13:57 24 Feb 07

I expect it's more to do with keeping the legal fees down - which would be passed on to customers, both retail and merchant banking.

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