Claiming back bank charges

[fingerz]

Interesting. Very interesting indeed.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632#step

 

[Matt]

hmmmm very interesting!

 

[SammyC]

I don't think I've ever paid bank charges. I've had ones for missed credit card pay dates.

 

[Ross]

Was chatting about this on the CTR forums and here's what a couple of legal types had to say on the matter:

Just spotted this on another forum...

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632#reclaim

Bank charges are not legally enforceable. Penalty clauses in contracts in English (and Scottish) law for breach of contract aren’t legal if the penalty exceeds the actual cost of the breach of either party.

We all know that it does not cost a bank £25 to £39 to return a Direct Debit, Standing Order or cheque, and luckily so do judges, and indeed the banks. It’s purely a money making scheme, and a lucrative one at that – with estimates that the charges from the top 4 UK high street banks generated £3 billion alone. One in five bank customers incur these types of charges, and because it's a bank imposing them, most assume that the bank must be legally entitled to do so.

OK so what are the rules?


Under the 1977 Unfair Terms (contracts) Act, the sheer fact that ALL banks make these charges makes this a breach of the act (the example given is exactly that!).

This is also a breach of the 1999 Consumer Credit Act (Unfair Terms in Consumer Contracts - the OFT is already investigating the charges levied by Credit Card Companies) and possibly the Sale of Goods Act, and many others.

Time to get legal on their asses....
:twisted:

I have to disagree with the first part of this post. Working in legal and commercial law myself you may want to check out a recent legal ruling in the case of McAlpine Capital Projects vs Tilebox Ltd. [2005]http://www.legal500.com/devs/uk/co/ukco_022.htm
Although this is liqudated damages (in essence a penalty) the loss has to be foreseen and calculated.

So I propose the question is the charge a penalty or the Banks forseeable loss? Just be careful before going down the legal route to ensure you have a good case.

I also agree that its time us consumers hit back for sure.

Being a Solicitor, I would just give some friendly advice to all those that go down this route.

What you are doing is threatening your bank with Court proceedings for recovery of charges which you believe (based upon what is written on the website mentioned above) they are not justified in charging.

I dont believe it is 100% proven that banks wont defend this claim, especially if you have already signed up to their terms and conditions which clearly state what charges they will impose if for example a direct debit is unpaid.

Its certainly worth having a go, as at the end of the day the banks want to keep you as a customer. I wouldnt advise actually taking it to Court though as you could end up taking up a lot of time and money for something you may not get back, which may be likely if your previous history isnt too good.

Just a thought. Doesnt stop you having a go by just speaking to your manager.

I dont think the banks are breaking the law as such. This would have to be decided at Court based upon the individual merits of each claim.

Its certainly not a clear cut decision as the website states as otherwise action would have been taken by the OFT / Watchdog a long time ago and banks wouldnt continue to levy charges.

I certainly think that anyone would have a good chance of getting money back if they put enough pressure on. The banks want to keep their customers after all.

However, you dont want to pee your bank off too much as they can just as easily drop you as their customer if you play up too much.

If you have been treated that badly though, I think anyone in their right mind would try their hardest to get the bank to sort it out. Probably, 99% of the time the bank would oblige. It just depends how far you want to take it.

if anyone is considering this heres wher you need to go

http://www.bankactiongroup.co.uk/

read everything on there and in their forum - this isn't a 'get rich quick' scheme - YOU MAY END UP IN COURT

if you decide to proceed read the library section of the forum and use the standard proceedure and the sample letters provided - if in doubt ask - the site mods are very helpful

im currently in the process of reclaiming about £600 in charges


ash.

p.s. also check out

http://www.penaltycharges.co.uk/

 

[Gary Bagshawe]

Sorry to bring this up again, but has anybody had any joy with this. I am currently going through the process and am at the point of taking natwest to court, one of my charge cards has just credited my account with half the amount of charges after sending many letters and then threatening them with court action, as "a gesture of goodwill" just wondered if anybody else had had any luck.

 

[minimeeze]

I claimed back £60 from the Halifax last month after they charged me that for going overdrawn by £20 They did say however that it was 'a gesture of goodwill' and the charges would stand if I went overdrawn again.

I have known people who have tried to claim money back, then they have had their bank accounts closed down, so if you are going down the court route, it may be worth opening an account elsewhere first.
Good Luck!

 

[markgray]

I got mine back £1300. But then they shut my bank account down on me because according to them i was refusing to agree to their terms and conditions.