The major banks have made £500 million more from their British customers this year despite the global credit crunch.
My first thought when reading that line was, ‘Wait, that can’t be right, the banks have taken huge losses this year…’
Then I realised my misunderstanding, the losses have been in the global market, locally, the banks have never had it so good. Recently granted a further six month extension to the stay against court cases on penalty charges, they seem to be capitalising on this, charging whatever they want to, when they want to, knowing full well that they cannot be held accountable.
This is clear confirmation that the penalty charges are indeed just simple profiteering, whilst the Western Banking world is in free fall, it seems UK banks are still making a profit.
A British Bankers’ Association spokesman said: ‘UK banks offer a unique
variety of services which are fee-free to customers but which cost
banks to provide.
Clearly, they are making a huge profit from these services which it apparently costs them to provide, as they certainly aren’t making the money elsewhere, such as in mortgages or stock market trading, as they once did.
Banks typically charge about £30 for going overdrawn and then about £35 per transaction, which then means at least a £65 charge, of which about 75% is profit. A veritable gold mine.
Indeed banks my also be using unscrupulous tactics to push these profits higher, twice in the past year my bank has tried to slip in overdraft charges claiming I have gone overdrawn, even though my statements and Online banking account clearly showed that I had not. If this is a new tactic, who knows how many people have been caught out.