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The answer to whether or not banks are making money at our expense by imposing penalty fees is simple. Yes they are! However, provided that you understand the way that your particular bank operates you can stay ahead of the game.

One of the main areas that seem to cause problems between unsatisfied customers and banks is indeed, the subject of penalty fees. Because the banks are wily enough not to make their rules crystal clear to their customers, and the customers themselves remain uninformed, the banks can make a considerable top up income out of their customers misfortune.

The only answer to this problem is to make sure that you take the time to read the small print regarding how you may default on your user agreement with your bank. When most people set up a bank account what is usually at the forefront of their minds is about how they are going to use their account for their own benefit.

Meanwhile the banks are doing exactly the same. They are a business that intends to gain profit from their trade. Unlike care workers they don't necessarily have their customers best interests at heart. They will want customers to see them in a good light, but if the customer makes the slightest of mistakes then they won't think twice about pouncing on the opportunity to make extra money, even if it leaves the customer in a bad way.

Customers often slip up with their accounts by assuming that their bank will be both fair and kind with them should a misunderstanding or honest mistake be made by them. This is an unwise assumption because banks are not there to be kind. Also they will have covered themselves legally so that when they issue penalty fees they are justified in doing so according to the law.

This is why customers need to be armed with knowledge about what they are agreeing to when they open a bank account, and about what rights they are wavering by doing so. One of these, it could be argued, human rights is the right to make simple mistakes unintentionally without being severely punished for doing so.

The type of mistakes that may be made are often based on innocent ignorance of the facts. Not being financially minded or having business savvy customers often don't realise the ways in which their bank has the right to extract money from them if they overstep an invisible line with regards to what can and cannot be done, as decided by the bank itself.

On top of this banks may charge fees for what they regard as providing a service outside of the original boundaries of their agreement. For example letting you use a cash machine that isn't the 'right' one, or for typing you a letter to inform you that they are going to impose a penalty fee.

The way to get the best out of your bank, because you can be sure that they will get the best out of you, is to see them as a financial business who are on nobodies side but their own. Don't see them as money guzzling piranha's or as white coated care in the community workers. They are not there for your well being and health, or purposefully ruin you. However, improvements could be made to enlighten customers.

Its time that the relationship between banks and their customers was evened out. Before banks offered their services it would be appropriate if customers were educated about what their rights were so that information was clear. The current hazy way of dealing with societies money is a smokescreen so that banks can profit as they watch their customers stumble in the dark while they see the situation clearly.

Learn more about this author, Bridget Webber.
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