Find Out How To Reclaim Your Bank Charges

But, Why Has It Taken Until Now To Challenge The Banks?

The law is clear, charges levyed by banks must be proportional to the actual cost the banks incur. Thirty five quid for an automated letter when you go a tenner over, come on?

Everyone in the country has been stung at some point and it sucks - how have the banks got away with it? The good news is you can reclaim your bank charges for up to the last 6 years, plus interest if you've got the nerve!

Let's Get Started

Write to your bank, ask for a list of the charges levy'd for the last 6 years. Simply add interest on and ask for a full refund. The bank is likely to refuse, threaten to take them to the small claims court and the likely hood is, they'll roll over. One person received £17,500 - SHOCKING!

There's no formal route to this, it's just about saying *%^$ You! give me my money back or I'll take you to court!

WARNING As much as I'd like to say it's as simple as that I can't, if you push your luck you could end up in a nasty battle. You must do your reseach first there is no guarantee you'll win, but most people have.

So How Much Are The Costs To The Bank (as if we care)

A meesly £2.50 - £4.50 as reported by a group of former senior bank staff by BBC2's 'The Money Programme'. Which is the true cost of sending an automated letter and.. there .must.. be something else????

This makes bank charges pain unlawful! They took our money without the right to do so, automatically!

Time to take it back, reclaim your bank charges now

What About Those Pesky Terms And Conditions Though?

If I told you I was going to asault you before punching you it doesn't make it legal. Enough said.

The head of the Britsh Bankers Association believes the charges are lawful, but the banks are paying out left, right and centre. So much so, even the courts can't shed any light because these types of trial are so rarely tried by a judge.

At this stage it's still just an opinion as to whether the charges are lawful or not.

Don't worry though, the banks want to avoid going to court. If a high court judge ruled in your favour, it would set a precedence which could lead to a simple 'reclaims process' opening the flud gates to millions. The banks would rather settle now for millions instead of the potential billions a high court judgement could cost. Better still, to fully understand whether a banks charges are proportionate or not, a high court would need to delve into every internal cost the bank obsorbs. Leaving the bank at with a major competitive disadvantage to boot.

Until the scale of the 'movement of the people' to reclaim these charges reaches tipping point the banks will keep on paying out.

What's the Official View?

The Office of Fair Trading in April 2006 summarised that credit card charges were to high and should be reduced to £12, this is now becoming the norm amongst most card providers. This only adds fuel to your 'take your money back from the banks' fire. It also means you can apply the same principles to reclaim your credit card charges, even if twelve quid is still to much.

One Step At a Time Get's Your Money Back

Open a new bank account just in case your bank closes your account when you make your claim. Unfortunately some banks will do this don't let it put you off.

If your seriously over drawn look to prevent taking the bank to court to reclaim your bank charges, if the rebate in charges doesn't come close to paying back what you owe and your credit history is suffering, get your credit report here for further guidance.

If I Reclaim My Bank Charges Wil it Effect my Credit Score?

No, the bank can not put a note on your credit file if you reclaim your bank charges.

What Next?

Write to your bank an ask for comprehensive list of all the default charges for direct debit, unauthorised overdrafts and standing orders you have paid over the last six years, which you are entitled to buy law. Enclose a cheque for ten pound as this is usually required to request your data under the data protection act. The bank must respond within 40 days under the data protection act or you can seek remedy from the Information Commissionaire, make this clear in your letter. (there will be templates of all the letters you need coming soon).

How much interest can you claim?

Your entitled to 8% interest on the money you have been charged from the date you were parted with the money. You wouldn't be paid the interest unless you won your claim in court but it's a great bargining tool, negotiation is an art not a science. If you get lucky you'll reclaim your bank charges and the interest.

Time To Write To The Banks Again

Write and tell them that you want to reclaim all the charges totalling the full amount because you believe them to be unlawful and that you want a response within 14 days. If you want to risk it for a biscuit tell them that you want to claim the interest acrued from the date the charge was made.

The Response

There are several replies you can expect to get:

• You get your money back in full, this happens on rare occasions.
• Refused or ignored - there are a multitude of ways the banks are trying to stop you pursuing your hard earned cash. They may flat out refuse, offer you some of the money, (at which point you need to decide to take it or hold out for the whole lot), Or delay you by 'looking into it'.

If your not happy with the response carry on regardless

Threaten to Take Them To Court

Tell them you are not satisfied/ haven't had a response and that you do not believe the default charges are proportionate and you believe 'your local court' will agree in your favour. Make it clear you intend to reclaim your bank charges in full. Give them 7 days to respond or you will start proceedings to reclaim your bank charges.

Deal or No Deal?

You will either get a response similar to the last or you'll get an improved offer. You need to way up how much your owe against what they are offering to pay. Think of it in terms of 'what is the chance you would loose if it went to court?'. Work out how much they are offering you as apercentage of your claim e.g You claim £1000, your offered £750, which is 75% of your claim. Reverse it, there a 25% chance the court will rule against you in favour of the bank. If there is or it's to close to call, take the money and crack open a bottle of champagne.

Again this is an art not a science, you have to way up whether the battle is worth the hassle and the possibility that you walk away empty handed.

I'm Going To Get Legal Or Their Ass

If you have still not managed to reclaim your bank charges make your claim through Moneyclaims website in England and Wales ( use Northern Ireland Courts Online in Ireland). There is a fee of between £30 and £120 depending on the size of the claim, which is refunded if and when you win.

If the banks don't make a response within 14 days you can reclaim your bank charges for the whole amount in full without a hearing. Using Moneyclaims is the best bet, as it's online and it's likely that your claim will be actioned much faster. Long live the net to automate their asses back.

Congratulations Your Done!

Only in the rarest of occasions will you not have been awarded your claim at this stage, if you aren't follow it through to the small claims court and your home and dry.

This topic is changing constantly check back regularly for updates.

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