Claim back your ILLEGAL bank charges

#1
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.

The law is plain: any charges banks levy on their customers must be proportional to the actual costs they incur. The simple question is, ‘does it really cost £35 to send an automated letter when someone’s gone 1p over the limit?’

Thus write to your bank asking for a list of your last six years’ charges, add interest on top and ask for a full refund. When it refuses inform it you’ll go to court under the small claims system. In most cases, the bank will simply pay out; one person received £17,500.

Yet this isn’t 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. There’s 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)
 
#4
Malteser said:
Good ideda, but several banks that have been challenged have ckosed down teh accounts of people who have done this as they said the "trust" between customer and the bank has been broken.
That's why the first step in the guide is to open a new account with a different bank. It's just a bit more hassle, but still worth it for the average of £1000 that people are getting back.
 
#5
#6
If the bank closes your account you can report them to a certain authority. However, if your bank has been charging you wrongly and then decided to close your account becaue you stood up for your right you really need to ask yourself if that is the people you want to use!

I'm currently going to court to claim back over a grand, and so far their responce has been exactly as described in the aforementioned websites.
 
#7
Malteser said:
Good ideda, but several banks that have been challenged have ckosed down teh accounts of people who have done this as they said the "trust" between customer and the bank has been broken.
Ah, but they can't just steal your money. They must provide you with a way to transfer your funds.
 
#8
Thinking about it, I'm sure there is a line in my overdraft agreement which says they can demand it back in full. If you have any debts with that bank, it might be an idea to square them away first.
 
#9
Malteser said:
Good ideda, but several banks that have been challenged have ckosed down teh accounts of people who have done this as they said the "trust" between customer and the bank has been broken.
but surely if they have been grossly overcharging you, then the trust has already been broken. Idle threats.
 
#11
right, i dont even have bank statements from the last 6 months, never mind 6 years.

Whast exactly do I have to ask for from my bank when I call them? Do i ask for 6 years worth of statement copies? Surely not! Or am i asking for a list of all charges from last 6 years????
 
#13
Moodybitch said:
right, i dont even have bank statements from the last 6 months, never mind 6 years.

Whast exactly do I have to ask for from my bank when I call them? Do i ask for 6 years worth of statement copies? Surely not! Or am i asking for a list of all charges from last 6 years????
From www.moneysavingexpert.com,

We need to know all the fines you’ve been charged by each bank or credit card, including charges from now closed accounts, over the last six years (the time period is limited by law). Now do note we’re only talking penalty charges/fines, not normal account fees.

What if I don’t have the details?

Let’s be honest, how many people have all their statements for six years? If you’ve online banking access, first see what’s available there, if not send a letter to your bank requesting a fully comprehensive list of all past charges. You’ve a legal right to do this under the Data Protection Act. If you don't know where to write to MoneySavers have compiled a list of data protection addresses which should help.

Unfortunately they are legally allowed to charge for this info, the maximum amount is £10 and, banks being banks, they tend to charge the full amount. So to save time, enclose a cheque for a tenner in your letter.

To help use this: Sample Letter Template
(Right click this and save the file)

The bank only has a maximum 40 days to respond. If you don’t get a reply, follow up with a phone call and then report it to the Information Commissioner for a breach.
 
#17
RFUK said:
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.

The law is plain: any charges banks levy on their customers must be proportional to the actual costs they incur. The simple question is, ‘does it really cost £35 to send an automated letter when someone’s gone 1p over the limit?’

Thus write to your bank asking for a list of your last six years’ charges, add interest on top and ask for a full refund. When it refuses inform it you’ll go to court under the small claims system. In most cases, the bank will simply pay out; one person received £17,500.

Yet this isn’t 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. There’s 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)
Isn't this a question of your inability to manage your finances properly - if you had, and I don't mean the odd occasion when you have gone overdrawn, then the question of charges wouldn't have arisen.

PAW
 
#18
PAW, i think you've missed the point, by law banks can only charge to cover administration fees, not charge what they feel like to make profit for shareholders!

Work in finance do you?

TB
 
#19
TopBadger said:
PAW, i think you've missed the point, by law banks can only charge to cover administration fees, not charge what they feel like to make profit for shareholders!

Work in finance do you?

TB
TB,

I have nothing to do with fin. I haven't missed the point about admin/penalty charges either. I was, however, making a point about yet another group of people awarding themselves 'victim' status'. Going overdrawn/bouncing cheques/not making credit card payments is, when done on a regular basis, pure fin mismanagement , not a prerequisite to having a bank account. The charges levied by the banks are merely an effect of this incompetence, not the cause.

PAW
 
#20
pombsen-armchair-warrior said:
TopBadger said:
PAW, i think you've missed the point, by law banks can only charge to cover administration fees, not charge what they feel like to make profit for shareholders!

Work in finance do you?

TB
TB,

I have nothing to do with fin. Haven't missed the point about admin/penalty charges. I was, however, making a point about those awarding themselves 'victim' status'. Going overdrawn/bouncing cheques/not making credit card payments is, when done on a regular basis, pure fin mismanagement. The charges levied by the banks are merely an effect of this incompetence.

PAW
Granted, there is some mismanagement with regards this. But are you suggesting that people going overdrawn because of someone elses incompetance (It happens enough in the Army, and more so if you own your own business) that you should recieve an over inflated charge?

You are either very ignorant or nieve
 

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