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Original poster

Did you know that bank charges of more than £12.00 have been ruled as unfair by the OFT and you can claim your money back? And your claim can cover the last 6 years?

537 replies

tigermoth · 23/04/2006 08:49

I've cut and pasted the article that appeared in Telegraph money section:

Get your money back from the bank

The Office of Fair Trading's ruling that bank penalty charges of more than £12 are unfair could spark a flood of complaints from customers seeking compensation for unjustified charges over several years.

Earlier this month the OFT ruled that penalty charges for late payments on credit cards, unauthorised overdrafts, unpaid direct debits and standing orders and missed payment fees on store cards and mortgages were deemed unfair if they exceeded £12.

Last weekend, this paper revealed that this could lead to redress for bank customers who have been erroneously charged for the past six years.

The OFT's initiative strengthens the case of anyone who has seen penalty charges automatically deducted from their accounts after falling foul of bank and building society small print. As with any legal proceedings, there is not a 100 per cent guarantee that you will win, but lawyers and consumer groups reckon the OFT's position means judges will be far more likely to accept arguments that penalties of more than £12 amount to unfair contract terms that cannot be enforced.

The process for reclaiming the unfair charges from your bank is straightforward.

First your bank is obliged to supply you on demand with a list of all charges you have paid in the past six years under the Data Protection Act. You then need to write demanding the bank repays the unfair charges. If that is not successful, you can take the matter further by either going to the small claims court of the Financial Ombudsman Service (FOS).

More details on how to claim and pro forma letters are available on the website of Which?, the consumer group.

"Claiming back these unfair charges from the banks is a relatively straightforward process," says Emma Bandey, a personal finance campaigner at Which? "These charges are nothing but an easy money-spinner for the banks."

I am thinking of doing this. What a windfall if I am successful!

But I am worried about something. If I push for this, and my bank give me my money back, is there a risk that the bank might start to get difficult with me? I don't want them to mysteriously refuse to send me a new cheque book, refuse to extend my overdraft limit or refuse a loan. Do you think there is a risk that banks might start doing this to customers who claim their charges back?

OP posts:
trix1 · 02/08/2006 12:33

I think you have to request them in writing see eg letters at bottom of thread. Not that you get them of course - Im still waiting after 4/5 months

quootiepie · 02/08/2006 12:35

went to Which? aswell... have to blooming pay to see about all this bank stuff. Money money money...

trix1 · 02/08/2006 12:38

As ive not had a decent response from them I am going to send letter two, ive estimated (total guess) that I have paid £90.00 a months so ive times that by 12 then 6 - thats what im going to ask back. its up to them to confirm the actual amount - they have had long enough to do it. Oh and I am going to add 8% for interest too. I have waited long enough for them to respond.

quootiepie · 02/08/2006 12:39

Jakeys.... I got £5 charge from Halifax. Expect £5 to be pinched from your account.

quootiepie · 02/08/2006 12:41

ooooh yeah, 6 years of intrest. waves fist at bank

trix1 · 02/08/2006 12:45

I bet they will be quick enough responding to me if I have gone way over with the estimate of bank charges they have charged me. I have two accounts as well with them. he he he

golds · 03/08/2006 09:33

little nervous and not sure what to do next, but I want to take matters further with Natwest, I have received quite a condisending letter from them basically saying there there not the outcome you wanted eh, but we are not paying up. Dh (away at moment) has just phoned me, he watched GMTV this morning and a woman on there is takeing Natwest for £2,500, they have offered her £500, she refused and is now taking them to court.

Please can anyone advise me of what to do next ?

Mummy2Toby · 03/08/2006 13:38

Hi all,

Have just added up my charges and sent the 2nd letter to the Abbey (also mentioned in it about the interest I have lost out on because of the charges) Will keep you informed on how I get on - have claimed £1018:00 plus any applicable interest. (fingers crossed emotion)

SleepyJess · 13/08/2006 13:05

Hello

My friend, a non-Mner who has gone through the process of claiming back her bank charges thanks to this thread which I told her about and she read, has this past week, had a letter offering her £800+ re her total bank charges of £2000+ on the provisio that she accepts and then does not attempt to claim any more in the future etc etc.

She wants to know.. should she accept? This is obvously not all she is entitled to (even taking into account the first £12 of every charge which they are entitled to charge by law) and they are calling this a 'goodwill' gesture and state that they consider their charges 'fair' (with no mention of what is actually legal.)

What would you all advise? The £800 would obviously be most welcome and handy at the moment but she doesn't know whether to accept on not.. This is Natwest by the way.

(Personally I am still waiting for a reply to my first letter. Mine is Barclays)

SJ

tortoise · 13/08/2006 13:11

I sent a letter for a list of charges about 3 weeks ago.What should i be doing next? Can i go into by branch of Natwest and ask for them to provide it?

WelshBoris · 13/08/2006 13:12

i sent my first letter off last week by recorded del to nationwide, had a reply within the week

Going to send the £10 off tomorrow then wait

Original poster
tigermoth · 13/08/2006 13:26

sleepyjess, I am in exactly the same position as your friend. I have been offered £1,000 as a goodwill gesture, for total charges of £2,300. Tempting but having spoken the the financial ombudsman service and the bank (Barclays) I have decided to press on with second letter asking for full refund and threatening court action. I did offer to compromise by accepting £1,600 - but Barclays wouldn't go for this, so will now press on with my claim. I made it clear that if they refused this compromise now, I would press on with a claim in full via the courts.

Your friend could try speaking to Nat West to give her a better compromise - it didn't work for me, but it might work for her. It only takes a phone call. HTH

OP posts:
SleepyJess · 13/08/2006 13:40

Thanks Tigermoth, I will tell her.

Toitoise, they have 40 days to respond and I think some (most?) banks are making people wait almost that long before they get their reply so they have a week or two to respond to you yet. Mine has been about a month too. Are you with Barclays perchance?

SleepyJess · 13/08/2006 13:40

Ooops sorry, saw you are Natwest too

tortoise · 13/08/2006 14:17

Thanks for that.Will keep waiting then

jampots · 13/08/2006 14:21

Im going to do this now as I have paid quite a few quid in charges over the last 6 years to Lloyds Bank. So, initially what do I have to do? Write to the HO and ask how much Ive paid in charges?

MarsLady · 13/08/2006 14:24

Is it true that Nationwide close the account if you send this letter?

twinsetandpearls · 13/08/2006 15:06

I spoke to my bank this morning after I was charged for going overdrawn this month after.

I was charged £30 each time for going overdrawn which came to a total of £90. When I asked if this was legal when I had been told that the maximum amount is £12 I was told that I ahd been charged for going overdrawn but for ahving to pay for an item for which I did not have the funds. I this a correct distintion or she is playing with words.

SleepyJess · 13/08/2006 16:23

Jampots... go here and follow the instructions exactly re what letter to send and when.

Original poster
tigermoth · 13/08/2006 17:27

twinsetandpearls, in my (inexpert) opinion, she is playing with words. So far I have encountered a fair bit of faffing around in trying to get refunds or info, expecially in the first stages when I suppose it might seem a customer is more likely to give up the mission. IME bank representatives I have spoken to do what they can to put you off taking it further.

OP posts:
Sleepymumof3 · 14/08/2006 13:00

Hey ho good thread ? Has anyone had experience with Lloyds tsb.I`ve probably paid hundreds over last 6 years.trouble is i know someone at my local branch and would feel a bit embarrassed as it will highlight my poor finances

glorybee · 14/08/2006 22:30

What an excellent thread - I and my dp will be writing the banks tomorrow. Nice one tigermoth-.

Mummy2Toby · 14/08/2006 23:20

Does anyone know how long the bank gets to respond after you have written to them requesting the refund for the amount of charges? I thought I read somewhere 7 days, but I could be wrong - thanks

CHOCOLATEPEANUT · 15/08/2006 22:14

I am currently claiming £2100 off Lloyds TSB.I have started the legal process through Moneyclaim and they have until 28th August to respond.

Nobody has had to go to court yet,read other peoples experiences on Consumer Action Group.The banks are paying ££££££££££ back!!!

I will let you know how I get on.....

CHOCOLATEPEANUT · 15/08/2006 22:14

I am currently claiming £2100 off Lloyds TSB.I have started the legal process through Moneyclaim and they have until 28th August to respond.

Nobody has had to go to court yet,read other peoples experiences on Consumer Action Group.The banks are paying ££££££££££ back!!!

I will let you know how I get on.....