Thursday, April 24, 2008

One For The Little Guys


This isn't gossip, and actually it isn't even close, although I do know celebrities who have bounced checks repeatedly. There is one actress who is B+/A- television/film and who has at least three corporate names and three corresponding corporate checkbooks. The problem is that two of the companies do not exist anymore, but it doesn't stop her from writing checks on the account. I know, I know, but she is a little slow. She once had about $4000 in bounced check fees in one month, and something like $30,000 for the year. Luckily the accounts were all at the same bank or they could have pressed charges because she was basically committing fraud every time she wrote one.

Well, if she were in the UK, she would be getting them all back. A court in the UK ruled today that bounced check charges are unfair. Well they have always been unfair, but today it was made all legal and proper. Seems that even though banks charge up to $70 per bounced check, their actual cost is around $2. There were unique reasons under British law why they are unfair, but the fact is that banks are going to have to refund to customers, billions upon billions upon billions of dollars for all those bounce check charges for the past six years.

Now if they could just do something about ATM fees.

14 comments:

jax said...

jesus Royal Bank of Scotland is gonna be busy...

they just passed a law here that gift cards cannot have an expiry date..ya for the consumer!

tania said...

Not quite, Ent - this is from the BBC report:
"A judge has decided that the Office of Fair Trading (OFT) can rule on the fairness of the charges, which many customers have been trying to reclaim.
Mr Justice Andrew Smith said his judgement did not necessarily mean the charges were unfair.
But the decision opens the door for the Office of Fair Trading to demand that banks cut their charges, unless any subsequent legal appeals are successful."

So it's only the start of the process. The banks can still appeal, and this will drag on for a while. Chances are, if the banks eventually have to concede and stick to charges deemed fair by the OFT, they will get their money from us another way - most likely by charging for having a bank account. (At present, apart from some premium accounts, the UK has free banking).

Grace said...

Jaime Pressley for the actress who bounces checks -- she has several companies under her name.

Anonymous said...

Hm I wonder if its Jen Aniston...she's had at least one production company before that I can remember.

jax said...

Drew Barrymore has a few

Irishstayc said...

WOOHOO - if they did that here it would be like winning the lottery for me. My bank charges $35. Yeah it sucks to be the paycheck to paycheck working poor... BUT at least I have a job ... well until July 1st since my company is moving to California and I'm not. OMG I am like Debbie Downer... Sorry!LOL

brendalove@gmail.com said...

Are Debbie Downer and Negative Nelly related?

Irishstayc said...

wahwaaaaah - LOL I think they are cousins BrendaLOVE.

I loved the Debbie Downer episodes on SNL... Rachel Dratch(sp) is hysterical.

KS said...

jen anniston had plan b with brad pitt. she left when the marriage was over. he still has it.

KS said...

jen anniston had plan b with brad pitt. she left when the marriage was over. he still has it.

K said...

ATM fees?

The only ATM fees we have are those third party cash machines. If you use any Bank's machine, there's no fee for most UK banks...

jax said...

same in Canada K. in fact i used my bank card in Spain last year and they charged me less than the gas station generic ATM down the street.

Mooshki said...

Having just paid $37.50 each for two overdrafts last week, I wish this would happen in the U.S.!

Tom Cruise is Satan said...

Heather Graham is the only actress who is too stupid to use the right checkbook.

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