On the money programme tonight, a comission set up by the BBC will reveal that despite the average "administration fee" charged by banks being £30, the actual cost of administration is less than £4.50. As a "penalty charge" is illegal under UK law, this also makes bumped up admin charges illegal.
It's simple to claim back your charges and most people are successful at doing so - apparently.
The BBC news is running the story this morning.
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,
I've been charged hundreds through these charges over the past few years and I plan to claim. Anyone else fancy a go?
(edited for clarity and added link)
It's simple to claim back your charges and most people are successful at doing so - apparently.
The BBC news is running the story this morning.
The law is plain: any charges banks levy on their customers must be proportional to the actual costs they incur. The simple question is, âdoes it really cost £35 to send an automated letter when someoneâs gone 1p over the limit?â
Thus write to your bank asking for a list of your last six yearsâ charges, add interest on top and ask for a full refund. When it refuses inform it youâll go to court under the small claims system. In most cases, the bank will simply pay out; one person received £17,500.
Yet this isnât an official process like getting Missold Endowment Compensation; it's about challenging the big beasts of the banking world and threatening them with court action. Push it to its limit and you may find yourself in a real fight, so do your preparation and research and take this seriously. Thereâs no guarantee of winning, but so far the majority of people have.
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,
I've been charged hundreds through these charges over the past few years and I plan to claim. Anyone else fancy a go?
(edited for clarity and added link)