Unfair Bank Charges
Reclaim your unfair bank charges…
On April 5th 2006, the OFT announced the results of its investigation into bank charges, saying that "default charges have generally been set at a significantly higher level that is legally fair." The OFT estimated that across the industry, this has led to unreasonable and unlawful bank charges in excess of £300 million a year.
In a statement, the OFT branded any credit card charges set at more than £12 as unfair, because a default charge should "only be used to recover certain limited administration costs". This does not mean that a charge of less than £12 is automatically fair - only a court can decide whether the charge is fair or not. But if a bank cannot justify its costs - in some cases up to £35 - for sending an automated letter advising of an unauthorised overdraft, the customer could be legally entitled to reclaim the penalty amount.
Many consumers have already reclaimed their money, by:
- Writing to their bank requesting list of charges for the past six years
- Making a claim that these fees are unlawful
- Raising a court summons
But it is often a lengthy process, and with this in mind many companies have been offering a reclaiming service to consumers who feel they have been unfairly charged by their banks. These services aim to:
- Save the consumer time, money and frustration by completing the process on their behalf
- Avoiding having to raise court summons through special agreements with the major banks allowing them to fast-track claims and reclaim funds out of court
- Underwrite any necessary court fees and represent their clients if the case does go to court
- Operate a no win - no fee service, generally charging a fee of 25% of the recovered claim.
We can put you in touch with Claims Financial, a company that specialises in reclaiming unfair bank charges, providing:
- A No Win No Fee Service
- Expert friendly advice
- Handling your case from start to finish
Find out more about reclaiming unfair bank charges