Just got my latest credit society statement (no names, no knock on the door at 4 am). Enclosed was a cheery note listing various fee increases. These are things like dishonoured cheques, inactive account fees, periodical payment rejection, direct debit dishonour, etc. The lowest rise was 12.5%, the highest 100%! An average of over 48% over 6 fees!

Didn't seem right to me. The fees themselves are a pain in the bum, but my point is, what has, for example, increased the cost to the credit society of dishonouring a cheque, thereby necessitating a fee rise (user pays etc)?

So I gave them a call. After 20 mins of lift music, the lady explained that it was because more people are writing bad cheques, have inactive accounts etc. "But", I said, "How has the cost to you risen?" Um, don't know.

As I explained to her, fee increases like these are among the reasons why people went from banks to credit societies in droves. And still are of course. Now it appears the CS's are making up for lost time.

Of course the REAL reason these fees are rising is they make more money out of it. Anyone - in or out of the industry - care to explain it another way?