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 Charge Claims Update
Bank Charges Test Case - The Facts
Background
The banks decided in July 2007 to go to court along with the Office of Fair Trading to clarify the law on current account charges.
This is because some customers said that the charges levied when customers sought to borrow from banks without prior discussion were penalties or that they were unfair. They started to claim back bank charges they had built up, citing a piece of European regulation – the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) - to back up their action.
It became apparent to the banks, the Office of Fair Trading, the Financial Services Authority and the Financial Ombudsman Service that steps had to be taken to deal with the significant volumes of customer disputes in a fair and orderly way. In the end the only way this could be resolved was by seeking court guidance on these areas of law. As there was considerable public interest, the banks and the Office of Fair Trading thought it was sufficiently important for the issues to be fully tested in court.
What has happened so far
The first stage of the test case process was heard by the Court between 17 January and 8 February 2008. It dealt with certain preliminary legal issues in relation to the terms and conditions used by the banks at that time.
On 24 April 2008 the High Court issued its judgment on the first stage of the test case process. It decided that the current charges could not be penalties but they could be assessed for fairness under the Unfair Terms in Consumer Contracts Regulations 1999. The banks appealed the decision, that the charges could be assessed for fairness, to the Court of Appeal at a hearing which ended on 5 November 2008.
Following further hearings, the High Court also decided that the terms and conditions previously used by the banks were incapable of being penalties but, like the banks’ current charges, they can be assessed for fairness.
On 26 February 2009, the Court of Appeal issued its judgment on this first stage of the test case process and ruled the banks’ current terms can be assessed for fairness under UTCCRs. The banks appealed the Court of Appeal’s judgment.
On the 25th November the Supreme Court ruled that the banks charges could not be assessed for fairness.
Where are we now
After the initial considerable disappointment, we have started to reflect on the ruling and the comments made by the Law Lords, all of which points to the fact that the banks won a victory on a technicality of a small point in law. In turn the FSA has removed it’s waiver that not only protects claims but also protects the banks from concluding claims.
Lord Walker said in the judgment that ‘this decision is not the end of the matter’. Leaving other avenues open to look at claims through different parts of the Unfair Terms in Consumer Contracts.
The Oft, FSA, British Bankers Association and the banks are in discussion to resolve all claims swiftly. Where we are waiting for the OFT to announce how it intends to respond to the judgment, details of which we are due to find out in the next couple of weeks.
Now that the waiver is no longer in place the banks must either resolve or provide a letter of deadlock confirming their internal complaints process is concluded on all claims within the next 8 weeks.
Without the constraints of the waiver we can now pursue the claim and are at present waiting for the first contact from the banks regarding this. Because of the timescales involved in dealing with complaints if you receive any form of contact from the bank could you either email, fax or post a copy to me at our office.
If the banks do not wish to conclude the claim satisfactorily in the 8 week period we can then complete a report for submission to the Financial Ombudsman on two grounds, one being financial distress, an area which is covered in the new banking regulation, and secondly the legal aspects not covered by the Supreme Court’s judgment.
Bank Complaints has been dealing with complaints for almost 12 years and our motto is that we never give up. By giving up the banks will win, and that never achieves anything.
As such we are most certainly open for business and will provide updates and details to clients as soon as we have them. If you have friends or relatives who wish to lodge claims then this may be an ideal time for us to submit claims on their behalf.
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.
