Bank Caught with Corporate Hands in Customer Pockets - Again
In an investigation into bank charges and credit card fees levied by banks, the Office of Fair Trading (OFT) announced in April 2006 that current bank charges and credit card fees are unfair and probably unlawful. This announcement has led to thousands of people demanding that their banks pay back bank charges dating back over the last 6 years. This applies to personal accounts and business accounts.
The UK Office of Fair Trading has determined that anything over £12 is deemed unfair. If this is the case I know one or two people who will probably be due around a £1000 in refunds from a combination of banks, credit card companies and mortgage houses. Of course the banks have always known that they were skating on very thin legal ice with their charges. The Unfair (Contracts) Terms Act of 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 are designed to protect consumers. This Legislation specifies that in order for a charge to be lawful it must represent the actual financial loss sustained by your bank. Hence the OFT stating that anything above £12 is unfair. It does not seem to matter that the terms and conditions that you signed up to when you join your bank are in the form of a contract. A contract that has illegal clauses in it is not a valid contract.
So far most claims made for the return of bank charges have been successful. Resulting in large refunds for many thousands of people. You can also claim all your charges plus 8% interest per annum going back six years which can add up to quite a lot of money. Interestingly the banks rarely fail to settle before the court date or they just do not turn up at all in, which case the customer wins!
The process of claiming your money back (personal or business) is essentially a do it yourself one. I suspect that the banks are banking (no pun intended) on the fact that most people will not bother to claim (no time, too much hassle etc). Don't fall into this category. This is the attitude that has allowed some of the world wealthiest organisations to get away with excessive overcharging for years.
Before you make a decision check out a `How to Reclaim Unfair Bank Charges' guide for more detail. If you still can't see your self confronting your bank get some help. A small industry of no win no fee legal companies is emerging and will do it for you, sometimes working just for the interest recovered leaving you with the actual fees overcharged. If you look closely, many will only charge a £10 data protection access fee to get started. Even if you are bone idle this has got to be one of the best £10 you will ever spend.
To find out in how to get your money back have a look at:
http://uni-pers.blogspot.com/2006/12/how-to-reclaim-unfair-bank-charges.html
Emmanuel Ohajah is a writer specializing in business, education and the online world
Related Tags: banks, personal finance, overdraft fees, reclaim high charges, credit card fees, bank charges
For reliable commercial finance advice, check out: www.eliteloans4u.co.uk.
Emmanuel Ohajah is a writer specializing in business, education and the online world.
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