Bank Charges Collusion.

[renegotiation]

Apologies if this has already been flogged to death. I don't have the stamina or time to trawl through the archives. I find it hard to believe that no collusion went on over the many years that bank charges miraculously continued to increase ad infinitum. Where would it have ended lol? £100 for an unpaid direct debit? LMFAO Probably not far off! Has there never been an investigation into bank collusion? All the furore seems to be about the morality and legality of the issue, not the anticompetitive nature of it. That's my impression from my limited experience anyway. I'm still a newbie to all this. I stand ready to be corrected.

[johnnymitch]

I find it hard to believe that no collusion went on over the many years that bank charges miraculously continued to increase ad infinitum.

 

I don't know about collusion , reneg, but when the first bank that did it found such a moneyspinner it wasn't long before the rest had there noses in the trough...........

 

LOL!

[renegotiation]

I would be very surprised if some explicit collusion didn't go on over the years. I would very much like to see a complete history of which bank increased which charge and when. I'm guessing that would be a very difficult thing to do though. Why have they never competed on charges? Well, we all know the answer to that, but shouldn't charges be subject to competition law? The banks call charges a service don't they? I really am a newbie and not legally trained. Sorry if i'm not talking sense.

[Guest vortex]

If there was collusion or a cartel then they could be sued for creating a cartel. As with other things in the market place, if things go up others follow suit but not necessarily in the same order as before.

[nobodys fool]

They do have their industry body (BBA?) and no doubt have plenty of "informal discussions" on a variety of matters.

Whether it is deemed a cartel is often a case of finding proof of specific agreements.

However, many of the actions have the appearance of cartel behaviour.

 

[i believe this stays outside the legal parameters of an accusation]

[renegotiation]

They do have their industry body (BBA?) and no doubt have plenty of "informal discussions" on a variety of matters.

Whether it is deemed a cartel is often a case of finding proof of specific agreements.

However, many of the actions have the appearance of cartel behaviour.

 

[i believe this stays outside the legal parameters of an accusation]

 

Perish the thought that they would even consider acting in such a manner. They all charge exorbitant amount for 'services' (cough, cough) that not one of them has been able to justify. All of these 'services' (cough, cough) just happen to be for similar exorbitant sums of money. Wasn't one of these 'services' from Halifax like £39 or something? :? :? :? I know one of them got up to £39. Mindblowingly incredible.

[dave]

Mindblowingly expensive, yes, but also within a few quid of most of the other banks - suggesting that this "service" is essential then, IMO, is tantamount to price fixing isn't it?

[renegotiation]

To my completely untrained legal mind aye lol. That's how it looks with my glasses on or off. My half blind dad just concurred too. Must be true. He's an ex-government chartered accountant. :lol:

[nobodys fool]

If even a public sector accountant can see it, it must be obvious

 

I'm in the same game(just not public sector).

 

An awful lot of big business operates on a "price leadership" basis and claims its market forces...

Many sectors appear to be price fixing cartels... yet prosecutions are rare

 

This may be down to many factors, but 2 come to mind:

1) Proof - without high level whistleblowers or major investigations its difficult to win a case (and those who might have proof tend to be extremely well paid and connected to strategic decisions).

2) Political will - this would be a challenge to institutions and "important", connected people and organisations... the kind who fund political parties. Although fear of resultant economic stability resulting from loss of confidence tends to be a commonly floated reason.

[renegotiation]

I was amused to see the latest German chocolate and English milk price fixing stories. The banks can't possibly be at it! :D

 

Can someone provide me with some info on the position of political parties regarding bank charges please. I watch the news and current affairs programmes a lot, but don't recall hearing anything from them? Do they actually see this as apolitical? :confused: It certainly shouldn't be seen as apolitical if that is indeed the case IMHO.

[renegotiation]

No one have any views on whether these charges are apolitical then? Anyone know if Gordon Brown made any statements on the subject? Maybe I do some research on it.