But if you have an instance where banks have stolen from small people I would love to hear more about it, and I'm sure it will make front page news around the world.
Banks moved LIBOR at will (sometimes for sushi), affecting all customers of banks.
(Can't complain about eg German banks too much in that regard. But the British banks are really the scum of the earth as far as `not being evil' to poorer customers is concerned..)
* Free real debit cards you can use online vs crappy card that only works in person
* Free, as long as you're careful not to go overdrawn vs frequently charge per month
* Usually free credit cards if you want one vs annual fee
* No charges for depositing cheques, cash, etc vs fees
* Withdraw money for free from any other UK bank cash machine (ATM) vs lots of fees
* Get paid 5 pounds/month for having a Halifax account!
UK banks are not good if you can't keep a positive balance, but if you're careful with your money they're great. The only issue I've run into UK banks is that they'll use bad exchange rates vs German banks, but they need to make money somewhere.
This was ruled to be illegal and banks had to set up whole departments to process return claims. I suspect this is the main cause of the big headwind.
https://www.fca.org.uk/news/commitment-high-street-banks-ret...
They also charged a fee for standing orders that didn't go through because of limited funds in your account. Instead of just ignoring them.
I was flabbergasted to hear about overdraft fees when I first saw them feature in social justice documentaries (e.g. Spent: looking for change).
My interest is low, but that's normal in 2016. .5% to .9%
Any CC payment I make is deducted from my checking acc 30 days later, no interest. It's essentially a normal debit card with 1 month free credit. After that it's 12-14% interest per year. That's very high of course, but it's not exploitative like a payday scheme. Further, keeping CC debt is quite uncommon here. And I can borrow up to $25k at 8.9% say for buying a car. That's pretty steep but not high compared to other countries, it's also not a very popular product. Mortgage interest is currently 2.9% fixed for 30 years.
As for my bank account, I pay about $15 a year for it. There's no costs to depositing or withdrawing money, putting it in or taking it out of a savings account. I mostly bank via an app on my phone, and payments arrive in minutes or hours. I don't pay anything for the shared acc with my gf either. For the CC I pay an extra $15 per year or so I think.
Now if this was a new startup in a growth phase where it's burning cash and offering free services, sure, but this bank was founded in the 1880s and has had roughly this pricing scheme as long as I can remember.
All in all I think I've paid maybe $250 for all by banking in the past 10 years.
Normal in the EU and other place unfortunately. Oz is still at 3.5% in saving accounts.
https://www.fca.org.uk/news/commitment-high-street-banks-ret...
> Do you know of a bank that has robbed from the small
> people? I work in finance
Now you could split hairs here, and say that rather than technically robbing their clients, the banks involved merely cheated them, but as you follow with:
> there's tremendous protection for the small people
> in everything we do
Matt Taibbi sums it up nicely, so rather than paraphrase him, I'll just quote him:
> > about two-thirds of all subprime loans between
> > 2000 and 2007 were made to people who already
> > owned their homes. The targets were often
> > elderly, in particular men and women of color.
> > Visiting loan officers convinced these borrowers
> > to use the homes they'd poured their savings into
> > their whole lives as ATM machines.
> > The pitch was: refinance your home, and get a
> > little extra spending money each month! Lots of
> > people went for it. But there was mischief hidden
> > in the fine print of many of these "refi" deals,
> > which often quickly exploded. Before long, the
> > now-departed agent's promises would evaporate into
> > a toxic quicksand of debt, unforeseen penalties
> > and foreclosure.
> > "80-year-old African-American resident of the
> > Baltimore area with a 714 credit score and a
> > rock-solid credit file who received a subprime
> > loan instead of a prime loan, and who was not told
> > that she may have qualified for a prime loan with
> > better terms."
> > "By the time she realized she had an
> > adjustable-rate mortgage, and not the fixed rate
> > she thought, it was too late,"
Tell me again about those protections for the small people? They sound great.
[0] http://www.rollingstone.com/politics/news/the-line-that-may-...
[1] http://articles.baltimoresun.com/2012-07-12/news/bs-md-ci-we...
> however I think it's fair to say there's a material
> difference between being stung for £200 and having
> your house being ripped from under you by sharp
> banking practice
This is not a case of greater protection for "small people".
a) event that may trigger this protection is very rare
b) "small people" are getting shafted with excessive fees all the time
So no, you don't.
How about keeping agreements between bank and client clear and short? Richer clients don't get caught on those, poorer do.
Not to mention how banks now push European Countries to get rid of cash so they can earn more by bank accounts/transfer fees.
As for getting rid of cash, I'm confused by your comment. I live in Europe (UK) and have free banking; free, less than 2 hour online transfers; free debit and credit cards; and free and convenient contactless payment. So does everyone else. Not having to carry cash is great!
Part of me wonders where the banks are making any money, but there are mortgages I suppose (and 2008).