I quote.........
"Whilst i know the charges are high and seem excessive what would you prefer a one off charge if you don't manage your account correctly or paying for example £100 per year for the privilege of having and operating a bank account?"
But that is the thing, it is often not a one off charge, if no money goes into the account within 24 hours of the first charge, they will charge each day for three days which can end up being a big price to pay, for say, going overdrawn by £4 for example, then being charged £90 for three days of being overdrawn, then possibly being charged a refferal charge again at the end of the month, so that would be a grand total of £120 for being £4 overdrawn.
Now that is a huge amount for many people, but for people who are on incredibly tight budgets, it is a slippery slope to more and more debt- the person inccurs the charges > the bank take the money and in some cases, they make the person overdrawn again by taking the charges out.
"Also, what is a reasonable charge? "
I for one would not consider £30 (or £90 in 3 days) a reasonable charge. The banks take enough money off us already- lets face it, the days when cheques were written by quills and hand delivered, is how the whole 5 day clearing period came about and still occurs today.
It doesnt not take 5 days whatsoever, this is just the banks way of holding your money and incurring interest on it. It is not reasonable to pay £30 for a letter being sent to you automated by a computer.
It doesnt not matter really what I say, the fact is by law banks are only allowed to charge the amount to cover their liquidated damages, which whatever they argue, does not amount to £30 and has been calculated to be somewhere in the region of 50p-£3