October 13, 2006 at 11:14 am #52352
My lawyer has been successful in cancelling an ‘off plan’ purchase contract and he has obtained a refund of my deposit with interest, without even needing to take legal action. I am naturally very pleased.
I now have the developers cheque for a substantial amount of euros drawn on a Bancaja cheque.
I dont like the exchange rate at present and therefore I have arranged for my UK bank, (Lloyds) to allow me a euro account in which I will deposit the euro cheque until I choose to exchange it.
I am fairly happy that Lloyds charges to receive the euro cheque are reasonable but I want to know if I can expect any charges from Bancaja.
I have seen postings on this forum about Spanish banks making horrendous charges to receive money, and there are other contributors on this forum with far greater experience than me.
Do you think I am at risk of incurring additional charges from Bancaja when the cheque is presented to them for payment?
October 13, 2006 at 12:56 pm #66708
From earlier experience of opening a currency account (going back about 8 years now) with Natwest in the UK and depositing funds my thoughts are:
Bancaja, when presented with the cheque, should pay out the full amount stated on the cheque minus NOTHING!
The charges you need to fear are those that Lloyds in the UK would levy for negotiation of payment of the foreign cheque – these can be quite hefty but you should be able to have them detailed and explained before you go ahead.
At least you won´t suffer the exchange rate problems on top.
Like I said, this is from around 8 years ago, so I´m not sure whether things still work the same – hopefully you´ll get some more replies from people with more recent experience.
October 17, 2006 at 10:22 am #66804
Thank you for your comment Samba66.
I have from Lloyds a printed list of bank charges for various services and the maximum for receiving a euro cheque, (drawn on a non uk bank account), is £80. This seems quite reasonable to me in view of the sums involved.
I am more worried about the Spanish bank charging system, which seems rather less clear, and also having read of some experiences others have encountered. I believe I read of a case in which the individual was charged 1% by his bank for receiving money into his account.
As I stated earlier though, I will be receiving the money into my uk bank and I wonder if anyone has experience of charges being transfered on from the bank sending the money.
October 17, 2006 at 10:39 am #66806
Why not go into the branch and ask them. They normally have charges displayed. Get it in writing so you have some come back if they do charge.
We’ve been caught out with transferring large sums for completion.
Just yesterday I was charged €3 per transfer for two monthly standing orders I set up. I’ve subsequently cancelled them when I saw the commission they wanted. The bank failed to tell me about the commission until they’d set them up.
Alternatively, maybe HIFX, who don’t pass on the charges can help you.
October 17, 2006 at 1:23 pm #66816
Two years ago made a couple of transactions through a money broker to my bank in Spain.
Both times 1% was taken from account.
I then complained to my Spanish lawyer ,who said this shouldn’t have happened !!!
Third transaction…no charges from Spanish end but still didn’t get my former charges returned.
Guess if banks think they can get away with it do. Same as in UK.
October 18, 2006 at 6:35 pm #66873
I have found bank charges to be a nightmare in Spain.
only last week my spanish solicitor was depositing a cheque into my spanish account , they wanted 210 euro to send it from one bank (court bank) into my spanish bank, then my spanish bank wanted 350 euro to ACCEPT it into my account. I then wanted them to transfer it over to my account here and they said that would cost approx another 300euro this would add up to approx 850 euro to move one cheque.
In the end the solicitor transfered it direct over to me but it cost 410 euro
and guess what ?? my bank here (alllied Irish Bank) only charged me 6 euro to accept it so you can see from that how (in my case anyway) we are being ripped off in every way.
I must say though good on A.I.b for the small charge.
October 18, 2006 at 7:07 pm #66875
we use cajamar bank and are very pleased no nasty charges (at the moment) very nervous re off plan property developper bust where was yours?
October 18, 2006 at 7:31 pm #66877
Last year I sold a flat and a bankers draft of €200,000 issued by BBVa was handed to me. I took it to my Bank BBVA , I was told the charges would €450. ( It should be known that the buyer was willing to pay me all €200,000 in cash at his branch ) Needless to say that I refused his offer
Back to my Bank, I enquired what are the €450 charges for a wondefull disguise of commission was the answer. I said what if I had €200,000 in cash what will be the mission the answer was nil. ( Please note that the transaction was within BBVA no other Bank was allowed)
I brought to the attention of the staff that they than have to allocate a cashier to count the money, store it, insure the cash in transit and the transit etc. it will be more costy. A blank look was given to me, besides if I am crediting a cheque for €10 or €200,000 its goes through the same mechanism so why there should the differential. another blank look.
Realising that no commercial rational or decency will work I decided to start talking loudly and statred making noises that the bank manager is a theif etc ( I do speak Spanish ) I was than taken in to the mangers room and the cost was reduced to €100, still excessive.
Needless to say that the account was closed. I had been with the Bank for over 4 years and average there had €20,000 allways in credit on which of course the bank made money for overnight interest etc
October 18, 2006 at 7:48 pm #66882
Such a co incidence, My bank was also BBVa
and this charce was for a small ammount and it was not the first time that they charged me large ammounts of money, they have done it on 2 or 3 occasions.
My husband is a native spanish speaker and has indeed kicked up a fuss on a number of occasions and asked them how A.I.B can charge only 6 euro for the same service and as Shakeel said they only look blankly.
I have been on to the financial regulator both here (Ireland) and in Brussles and the rules are that they may only charge you the fee that they would charge for that transfer in their own country. Basically if they charge 100euro to transfer money from malaga to Madrid , then they are only supposed as per E.U regulations to charge the same ammount to move that money to another E.U country.
the way they get aroung the rules is by having it in small print that they charge a % fee for all transfers so they cover they backs by this.
Indeed Shakeel was lucky to get them to drop the charges to 100euro, probably because it was a large sum, we were not so lucky.
We are closing the account there as soon as possible.
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