Claiming back bank charges..

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT Member discussion
Did anyone see the BBC programme over Christmas on the unlawfully high charges issued by banks?

One client of mine has paid £1,200 in bank charges over the past year and he is working through the procedure to reclaim around £5k back plus interest over the past 6 years.

We are told the whole process should take around 12 weeks.

Has anyone else attempted a claim? Any thoughts?


Resources here and here.

There are companies that will do the claim for you but they charge 25% of the recovery plus VAT for writing a couple of letters - no thanks!
«1

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    A client of mine (funny enough the same bloke involved with the factoring!) has successfully claimed back a few grand from this - I don't know who he did it through.

    I don't fancy getting involved with claiming money back on behalf of a client though!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..


    I was contacted last year by a company offering to check our bank statements and I declined.

    I keep a close eye on our charges (doesn't everyone?) and I'm not sure what I could have missed.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Hi Helen

    It's not about being incorrectly charged. The BBC reported that it is in fact illegal for banks to charge a penalty in excess of the actual costs of sending you a letter to say you have exceeded your overdraft or in excess of the cost of returning a cheque to the drawer.

    They estimated the actual cost to the bank of doing these things was nearer £4.75 than the £30/25/50 that banks charge.

    Therefore if you have received any such charges then you can make a claim for them.

    The article listed in my first post will give the full details but basically you write to the bank and say I want all my bank charges back plus interest which I estimate to be £x. The bank will probably say no thanks. You then submit a small claims court application. Bank thinks.. oh dear, don't want to go to court and provide a test case for every single one of my customers to reclaim their bank charges. Hey presto they come up with your refund!

    Obviously only applies to people with poor control of their bank accounts, forever exceeding their overdraft limit, writing cheques that bounce.. ..anyone know clients like that?!

    I'm not offering it as a service to my clients, just informing them. Let's just say it's one of those 'added-value' things that keeps them happy!

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..


    Thanks Dean. I don't get charges for that kind of thing - I guess these companies take further advantage of disorganised businesses.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    hmmm interesting, Dean does this apply to all types of account? (personal, business, company)

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Dean I belive it does - my client claimed them back on his Ltd Co account and his son claimed on his personal account.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Thanks Jodie.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Is there such a thing a a standard letter or form to contact banks about such "overcharging"?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Have a read of the first link that Dean posted.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    I have now - thanks for that information.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    See here for some success stories.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Banks may be charging too much when compared with anyone else, but how does this stand with the law?

    As was mentioned, this only applies to people who don't keep control of their bank accounts. The banks advise their clients in writing of the potential charges for going over the limit. Surely, the law says that, in continuing to use the account, the customer is expressly agreeing to the terms. That means paying up when you go over your limit.

    Just remember that if these charges are dropped, then the rest of us who try to stay within the limits will have to pay more for our accounts. The banks have to get their money from somewhere.

    I would also ask, how much do we, as accounting people, charge for letters? I can't imagine any of us charging £4.75. What happens when the banks are dealt with? Do customers start on their accountants next?

    Be careful what you wish for, people, you might just get it.

    Michael
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..
    Michael56J wrote:
    Surely, the law says that, in continuing to use the account, the customer is expressly agreeing to the terms. That means paying up when you go over your limit.

    This kind of oligopolistic abuse by big business is exactly why the Unfair Terms in Consumer Contracts Regulations were introduced in 1994.

    Penalty charges should only exist in contracts to reimburse the breached party for their reasonable costs incurred by the breach. They are not supposed to be punitive or profitable.

    I don't issue any penalties to my clients. I write to late payers but I certainly wouldn't charge them £30 for the privilege of receiving it.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    I meant no offence, Dean. I'm sure you believe you're helping, otherwise you wouldn't offer the service.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    No offence taken Michael.

    Just to clarify, I don't offer it as a service at all. I just feel the need to 'spread the word' as I'm sure this is something many people can benefit from.

    With HSBC making £11.7 billion profit last year I have little sympathy for the banking industry.

    I am all in favour of consumer groups questioning every industry sector on their pricing policy and what they get for their money, including the accountancy profession.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    My gripe is with Tax Credits. If anyone knows a way to beat the overpayment fiasco, I'd be very interested.

    Michael
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Just another question. Do you know if the same rules can be applied to credit card companies?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..
    TC wrote:
    Just another question. Do you know if the same rules can be applied to credit card companies?

    Read Dean's other link in the first post.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    I don't think it does apply to credit card companies as yet as one of my colleagues has already enquired.

    No doubt they will be the next on the public's target though.

    Kind regards
    Steve

    p.s. Dean, sometimes people may not be aware of reference in previous posts possibly due to time constraints perhaps. (I've made the same mistake on countless occasions), hence my reply to this and the ATT thread.

    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Steve.. The law applies equally to credit card companies, store card companies and any other money-lending institutions levying excessive penalty charges.


    Dean.. You could have just added a 'yes' to your last post!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    See you do learn something every day. I'm not sure what my colleague was referring to though she claimed it was a credit card (though then again I'm not sure how eager the bank would be to encourage you to put a claim in!!). I must admit I did see the program on BBC1 which I seemed to recall centred around the banks - though invariably they also own the Credit card companies etc so it makes sense the same procedure applies to these institutions as well.



    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Asking your bank/credit card company if charges can be reclaimed is like asking the Revenue if they know any good tax schemes!

    You have to be persistent when making a claim. Banks know they will lose at a small claims court so their usual tactics are:

    1) Straight away: State that the charges are legitimate and in their T&C's and no refund is due.

    2) Week later: Offer a small goodwill gesture.

    3) As court time approaches: they usually offer 50% of the charges back.

    4) Day before court date: offer to repay full charges as a goodwill gesture with no admission of liability.

    or 5) Don't bother turning up to small claims hearing and court awards you with charges plus interest and court costs.

    They will NEVER let a case go to the full court because if that court then finds them guilty they will be forced to refund all their customers and rectify their charging structure!

    Reminds me of that fella that claimed Widows Bereavement Allowance and the Inland Revenue offered an out of court settlement the day before the case was to be heard as they knew they would lose and would have to offer WBA to all widowers.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    I'll bear that in mind in case I get asked by other clients trying to reclaim their charges back.

    Looks like if this causes a "meltdown" situation then banks will have to start charging all customers for their facilities, hence, free banking becoming a thing of the past which isn't good!

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Apologise, I never ment to upset anyone. I think i'm developing some pet hates...

    Regards

    Dean

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    We don't want you getting a Simon Cowell reputation (Mr Nasty!) :lol:

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Oh good god NO! I really don't mean to be like that. Think i've got a lot on my plate at the moment, although the bank manager is making it worth while... he's not adverse to lend me 500k to buy out another practice :shock:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    You can have mine for 450k.. :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Do I sense a Dutch auction here? I'll do mine for £425K :lol::lol::lol:

    Claudia

    PS - good link and thanks - will mention to some of my less creditworthy clients!

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    :lol: Don't get too excited, nothing will happen I suspect for another 12/18 months... just asking a few questions and putting some feelers out.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Claiming back bank charges..

    Hello,

    I have claimed back charges on personal accounts, credit cards, business accounts etc, in total i have got around £6000 back so far.

    All settled before court.

Categories

Privacy Policy