Unlawful Bank Charges

Banks may soon have to pay back millions of pounds to customers who have been victim to unlawful bank charges. In April 2006, the Office of Fair Trading (OFT) announced the results of its investigation into bank charges, saying "card default charges have generally been set at a significantly higher level that is legally fair," and estimating that more £300million a year has been wrongly taken from people in the form of unlawful bank charges.

Find out more about reclaiming unlawful bank charges

Although only a court can actually decide whether the charge is fair or not, the OFT branded credit card charges of more than £12 as unfair, arguing that a default charge should "only be used to recover certain limited administration costs", and this will be used as a marker. If a bank cannot justify its costs, which can be as high as £35, for sending automated letter, customers are being encouraged to try and claim unlawful bank charges back.

They can do this buy:

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
Using a company set up to claim unlawful bank charges back on their behalf.

These companies generally operate on a no win – no fee basis, settle the majority of claims out of court, represent clients if the case does go to court and cover any legal costs incurred.

We can put you in touch with Claims Financial, a company that specialises in reclaiming unfair bank charges, providing: