"Actual Cost to the Bank"

[pdudley]

Hi All,

Here's something to ponder; much has been made of the subject of actual costs to a bank for sending a standard 'franked' letter, etc. I have read that can range from 39p to £1.99

For the last 2 + years I have had all such letters and statements sent to me electronically, i.e. I can view them when I do online-banking.

So here is the burning question! What is the actual cost to a bank for sending an electronic letter or statement, it must be practically free!!



PD

[MARTIN3030]

Welcome to the site.
You raise an interesting question....in fact the 64 million dollar one that so far the banks (and other financial institutions )...have been extremely reluctant to answer.
Such is their complex over this issue that they are prepared to settle claims albeit late in the day,to avoid revealing the actual true costs.
Take for example Halifax who were charging 28.00 this then went to 30.00.......then 35.00........then 38.00....in fact by now it would probably have been 45.00 !!!
So thats one charge.....but it takes you overdrawn even further as they add a further 30.00 for being overdrawn.
One cheque failing could therefore potentially cost a couple of hundred quid as all the others go domino effect !!
We have bankworkers here who have suggested the actual cost to the banks is pence.
Lets be clear though.......if the banks knew that the charges WERE in proportion,then they would be challenging them.Whilst some of the more ignorant institutions are hell bent on fighting (mention no names Citi ) .....most of the banks are happy to just pay up.