Bank charges for unauthorized overdrafts, bounced cheques and returned direct debits are those ‘damages’. Bank charges to customers were arrived at by totaling these costs and then making assumptions about the number of customers that are going to incur charges. Bank charges for going overdrawn or for bounced cheques are the equivalent of a charge for breach of contract, known as liquidated damages, and the courts can enforce payment. So, how do you go about getting the bank charges back. There are only two bank charges cases known about in which a bank has gone to court, defended its charges and won. You can claim back any unfair bank charges, which the law would class as a penalty, that you have accrued over the last 6 years. The true costs of these so called bank charges to date have not been proven any more than a few pounds.
Claiming back your unfair bank charges can be a long and drawn out process, with the banks doing everything they can to delay you receiving back your unfair bank charges in the hope that you give up claiming back your unfair and illegal bank charges. An example of this could be perhaps if a customer is a day late making a payment, even if the customer has been with the bank for 20 years and never missed a payment they will still incur the dreaded bank charges. The Office of Fair Trading has already forced credit card companies to slice maximum fees to £12, and a ruling on bank charges is imminent. If you’ve been hit by default bank charges, you can ask the bank to refund the charges voluntarily. I have yet to find a single case of somebody in such circumstances who does not tell me that they had been hit by bank charges. This has led to thousands of people taking on their banks and claiming back bank charges over the last 6 years. The campaign to reclaim unlawful bank charges is the biggest consumer revolution for years.
Charges against the banks
Complaints against banks have soared, according to the Banking Code Standards Board, with most about interest rates and unfair charges. The bottom line is, ensure you make it clear that you’re using the Data Protection Act to request of list of charges. The issue here is whether banks charges are allowed under your contract with the bank or whether they are really penalty charges. These are charges that are incurred for unauthorized overdrafts, bounced cheques and clearing Direct Debits when there are insufficient funds in the account. Various laws mean that the banks cannot enforce such charges legally. Complaints against bank have soared, according to the Banking Code Standards Board, with most complaints about interest rates and bank unfair charges. The Office of Fair Trading has thrown out suggestions that current account holders in the UK will face bank charges of around £300 if banks are forced to scrap their controversial penalty charges and that has to be good for the consumer.
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