|
For a number of months now bank customers in the UK have been clamouring to try and reclaim banks charges that have been applied to their bank accounts over the past six years for going overdrawn or exceeding their agreed overdraft limit, for returned direct debits, and for bounced cheques.
This because UK financial regulators deemed these charges as unfair and unlawful because they did not in any way reflect the costs that were actually incurred by the banks when a customer goes overdrawn or a cheque or direct debit is returned, with some banks charging up to ten times more than the actual cost incurred.
And experts in the field are now urging consumers to press ahead and get their claims in as soon as possible, as otherwise the amount that they can reclaim could be affected. This is because the Office of Fair Trading is due to make an announcement soon – probably within the next month – with regards to how much banks can actually charge in this type of situation.
Those hoping to reclaim their banks charges in full will need to get their claims in without delay, or could otherwise find that they only get to reclaim a portion of what they think the bank owes them in back charges.
When the Office of Fair Trading reaches a conclusion with regards to the amount that banks can fairly charge for such account defaults, banks may then be able to argue that customers can claim back only the amount that is over and above the fee that has been deemed fair by the OFT.
At present banks have been paying out on claims made by customers, although some banks have been exercising what have been described as revenge tactics, such as closure of customers’ accounts when they make such a claim.
So far none of the banks have justified the charges that are currently being applied to accounts, and have paid out to thousands of customers, many of whom have claimed back hundreds and even thousands of pounds each in back charges.
Tom Smith
20.03.07
Further Information:
|
