How to reclaim your bank charges.
Until the result of the test case, the regulator, the FSA has put a hold on reclaiming. Yet it’s crucial to start a reclaim now, as you can only go back six years (five in Scotland), and delaying may mean you lose the ability to get the money for old charges back. To start your reclaim please complete our paperwork so that we can lodge your claim.
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Bank Charges Latest 11th July
Apologies for not being able to forward an update earlier this week but the anticipated information from the OFT and FSA has not been made available. However, we have received information direct from the court where the hearing was held that provides a useful understanding as to this latest stage.
Court Hearing 7th – 9th July
The hearing was to establish whether bank charges applied by the banks historically (over the last 6 years or so) can be looked at by the OFT in relation to fairness and whether the charges can be viewed as penalty charges.
It was decided and agreed between the OFT and the Banks that all historic terms, as well as the present terms, are subject to assessment of fairness. So this part should be just a rubber stamping exercise. We do at least know there are some terms which the OFT still consider are capable of amounting to penalties under common law. So there is a very good chance that the terms that the OFT have identified have a good chance of actually being accepted by the Judge. A judgment on those lines, would at least mean that some claims could be given the green light to proceed and a ruling of this nature would put incredible pressure on the banks to resolve the claims.
The Judge has indicated his intention to make a declaration on historical fees and their applicability under the UTCCR fairness principles as well as the penalty charges aspects. He expects this declaration to be made as soon as possible but is likely to be after the OFT releases its report on the fairness of bank charges at the end of July. The reason for the delay in releasing his judgment is so that he can address fully all the aspects of the ruling to avoid the banks delaying the process in the future by way of legal loopholes.
It does appear from what was said in court that the Terms in the bank contracts will apply to historic terms across the board, and it also appeared the Judge was in agreement with the OFT over those penalty charge clauses in historic terms that were submitted.
Although the judge has yet to give directions, it appears that the OFT will be reporting to the judge by way of letter on 24th and 25th July as to the position at that time regarding the details of the report which is awaited. The biggest concern for the judge seemed to be that the OFT and the banks would reach some form of agreement as to a fair level and/or structure of charging and would therefore discontinue the current litigation.
He also showed his deep concern at still not being in a position to give the go ahead to proceed with claims cases. He was particularly concerned with claimants who were ''desperate'' for a refund. The OFT ruling on fairness appears to be holding this up, but is to now be addressed at the end of the month.
The pressure the judge is putting on the banks and OFT to complete the legal process without delay will not have gone unnoticed by the banks legal teams who will no doubt be reporting to their respective clients. They will no doubt also be uncomfortable by the suggestions and attitude towards the banks evidence in this case where the judge is of the opinion the OFT could ask for an injunction against the banks to suspend all charges when their report is published.
He even suggested that - in the unlikely event the OFT rule the charges fair - a handful of cases could be used as test cases if consumers don't agree! This is not good news for the banks as he is clearly stating that regardless of the OFT’s findings the case will continue.
Indeed when a highly respected High Court judge starts to make fun of the defendants they must in turn be asking themselves serious questions of how long they can continue defending this action. The HSBC QC was going through a customer scenario of charges when it became apparent to the judge that one charge amounted to £48. The judge said ''£48? That's the highest one we've had so far!'' smiling to himself and shaking his head in disbelief while viewing the bank's legal teams for a response! No response was heard.
The delay in the process is incredibly frustrating but the most important issue is that the right decision is reached. With the ruling to date and attitude of the judge and what appears to be a damning report which is due from the OFT regarding the banks, we will achieve the right conclusion. We are in contact with the banks daily to ascertain their current stance regarding claims which now could settle at any time.
About Bank Charges
Bank penalty charges have been well publicised and are potentially unlawful charges levied on bank clients. There has been a tremendous amount of resentment concerning these charges, which range from excess fees through to returned cheque fees and unauthorised borrowing interest.
Approximately 50,000 searches a month are made on the Internet for the search string ‘bank charges’. There are a number of websites, which have been set up offering clients advice and copying correspondence to them to forward to the banks to begin the recovery process. Whilst this is an option it offers clients little protection. Unfortunately, the banks are now taking a harder line regarding the refund of these charges and are now forcing clients to take them to court.
The banks charge approximately £3billion to £5billion per annum by way of penalty charges. In order to successfully recover the charges a professional approach must be adopted. An approach that we have a proven track record of providing that maximises the client's ability to recover these charges as well as offering professional advice on how to address any problems that the bank may cause as a result of the claim progressing during any claim.
Bank Complaints Offers:
A wealth of experience in dealing with a wide variety of banking disputes.
A broad banking background.
A proven track record in the recovery of bank ‘Penalty Charges’.
Personal, business or limited companies can reclaim these charges.
Reclaim your bank charges
Bank 'penalty charges' are excessive. Whilst this is not a fact there is certainly a very good argument to suggest that this is the case. The question that must simply be asked is does it cost £35 to send a letter when an overdraft facility is exceeded?
Technically our argument revolves around the fact that if a client of the bank exceeds a facility they are in breach of contract. As such the client should have to pay damages which do not exceed the cost of this breach. In other words, the banks can only impose a charge which is proportionate to their cost.
If the bank charges a figure higher than this 'A penalty charge' then the law of contract allows the recovery of this cost. Of course these fees are part of the terms and conditions yet these charges are still legally challengeable.
The Office of Fair Trading.
The office of fair trading is likely to suggest to the banks that their charges are capped at a fixed rate. However, there will be a section in their report that suggests that whilst the banks should adhere to their recommendations all fees can be challenged through the legal system.
We have considerable experience of the banking system through our banking background and as such we are able to adapt quickly to the changes that the banks impose in relation to dealing with these claims. We can also persistently pursue the bank to recover the relevant information providing a strong argument backed with our background in banking and providing expert witness statements in court to suggest to the banks that resolving the situation positively and in a timely fashion through ourselves for our clients benefit.
Bank 'Penalty Charges'
As a company we are recovering substantial sums of money for individual clients and for all clients as a whole. We understand the banking system and the way that the banks operate in not only charging those fees but also the recovery of them.
In other words you can of course recover your charges in the same way that you can install the boiler into your home. In the same way if you do incorrectly plumb in your boiler it can like the banks and the recovery of your charges blow up in your face if it is installed incorrectly. In addition it can take a considerable amount of time to prepare paperwork submit and of course go through the rigours of dealing with a bank which is fully aware of how to deal with these complaints and successfully deflect recoveries so that they pay out an absolute minimum.
Recovering your bank charges yourself. The DIY approach
Like anything in life you are of course able to pursue your bank to recover your bank charges. Recovering the information, prepare a response (providing you understand the contents of correspondence that you forward to the bank) and ultimately prepare paperwork to submit a small claims application through your local county court.
We appreciate that there are templated letters detailing how your bank charges can be recovered. However be wary of these as you must know and understand the contents of any letter that is signed as you may well be questioned if the complaint continues to the small claims court by the judge or the bank's solicitors.
How to recover your bank charges.
At Bank Complaints Ltd we believe in our ability to recover your account charges. Working purely on a no win no fee basis. Should we successfully recover your bank penalty charges to a level which you are satisfied, our fee is 25% including VAT.
To begin this process you will need to complete your information as detailed on our adjoining bank charges page, where you can either print our paperwork to sign and return to the address detailed or submit your details so that we may forward the paperwork by post to you.
The process of recovering your bank charges can vary greatly but as a general rule the average recovery period is approximately 3 months.
We have a good relationship with the banks which enables the conclusion of these claims with the least inconvenience to you as a client. We have been operating in the bank complaints arena for over seven years and have considerable experience in dealing with these financial institutions. Having provided many interviews for the media in relation to the recovery of charges where we are respected as the leading recoverer of bank charges in the United Kingdom.
