In response to a planned clampdown on charges that high street banks make on smaller and medium sized business bank accounts by the Office of Fair Trading, a well known bank is saying that it will be cost them £100m per year.
Chancellor, Gordon Brown, made it perfectly clear earlier this year that certain big banks have just six months to agree terms to reduce excessive profits that they make from smaller businesses.
Our View
We are extremely sad that the multi-billion pound giants will suffer these 'trivial' losses. Perhaps they could make up their so-called "losses" on interest and investment gains if they invest wisely the profits raised from excessive charges that have, for so long, been in place for smaller and medium sized employers such as ourselves.
Being charged on every transaction can sometimes make banking a fiasco. We might as well charge in "meatballs".
In a recent issue, we received a cheque for £0.35 (a credit item for a wrongly priced good), the transaction charge to bank this cheque would have been £0.45. Costing us 10p as well as the time to enter it in our accounts. Needless to say, the cheque is now framed on the wall as the "one that got away".