How Much Do You Hate Bank / Credit Card Charges?, Get them all refunded with interest!

[mackay1]

Hi,

I know this is right off topic - but the section does say "anything goes".

You've probably heard at least something recently about all the fuss over bank charges being way too high and the Office of Fair Trading telling the banks to sort themselves out.

You may also have heard that there are lots of people getting all these charges refunded by their bank.

I was a bit sceptical when I first heard about it but I feel so strongly that the banks conduct is dreadful that I decided to give it a try.

I started the process on 7 March by requesting copies of my bank and credit card statements for the past 6 years. When I got them I listed the charges on a spreadsheet and claimed the money back. After rejecting a couple of offers of partial refunds I received every penny back today with interest!

The process wasn't complicated and only took a few hours in total. I got most of the information I needed from the forums at these sites:

http://www.consumeractiongroup.co.uk/

http://www.penaltycharges.co.uk/

It seems clear that these charges are unenforceable because they bear no relationship to the banks own costs in dealing with whatever the customer has done wrong (for example - paying a credit card bill late). These charges are therefore penalty charges rather than the banks seeking to reclaim the reasonable costs they have incurred in dealing with the matter - and penalty charges are unenforceable.

The forums show that the banks are settling ALL these claims because they do not want the adverse publicity of losing in court with the implications that such a precedent would have. In any other situation the banks would vigorously defend any action against them and it seems their total capitulation over this is a clear indication they are in no doubt they've crossed well over the line.

If like me you've ever been furious with your bank or credit card company for ridiculous charges (I was once charged £58 for going over my overdraft limit by 14p) then you might care to have a look.

I hope this helps some Club-XM members. I won't bore you with more detail - if anyone wants further information - just shout.

Roy

This post has been edited by mackay1 on May 19, 2006 04:14 pm

[Little&Large]

Hi Roy
Many thanks for putting the post on.I had heard of this before but had never done anything about it.I asked for the last 6 years worth of fees from HSBC and was told they would charge me for it!!!So I didn't bother.I have been charged in excess of £4000 pounds over the past 4 years in fees and charges,which I have always felt bore no resemblance to what it cost the bank.It was however on my Business Account so I do not know if I can still claim all the money back,or any of it.Perhaps you could advise me.
Regards Rob

[mackay1]

Hi Rob,

Glad it was of interest. I'm pretty sure if you're a sole trader (or even in a partnership) the procedures are more or less the same. The question has come up on the consumeractiongroup forum - you could check there to see what others have done.

To be honest - I'd have a go anyway (assuming you're a sole trader etc) as you've very little to lose. Penalty charges are unenforceable in any case whether you're a consumer, sole trader or limited company. (The precedent for this was Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor co Ltd [1915] AC 79 along with Murray v. Leisure play [2005] EWCA Civ 963 - and this is what everyone on the forums is citing). The banks won't want bad publicity concerning their treatment of small / meduim businesses any more than they will concerning consumers so I suspect they'll roll over to avoid going to court.

I was daunted by the prospect of looking out old bank statements and having to pay for missing ones too - until I discovered that you have a right to this information under the Data Protection Act - and it stipulates that the maximum charge the bank can make for providing them is £10.00 (and they must do so within 40 days). My account and credit card are both with Halifax plc and they deducted £5.00 from my account for providing all the statements. (Some people on the forums suggest you enclose a £10 cheque with your request for the information - this might be safer.) The bank was very careless in providing my statements - with huge chunks of missing data (2 years worth in one case) - although according to the page numbers they were all in sequence - so do check carefully if you decide to request them. I had everything I needed within 4 weeks though.

I've attached a copy of the letter I sent requesting the statements. Although I don't particularly like the style of the letter templates on the forums - they have certainly worked and so I decided to use them with very few changes.

There are lots of examples on the forums where people have had refunds of over £4,000 - and I suspect many more people prefer not to post their results. You can see from the forum posts that nobody quite believes they'll get their money back - despite the evidence to the contrary! It's also evident that most people are surprised by just how much they've been charged over the last 6 years.

I hope this helps. Just shout if there's anything you want to ask.

Roy

P.S. This section of the forum doesn't seem to allow attachments. I'll see if I can PM the letter to you. If anyone else wants it - just ask. (I'll ask Noz to see if he can tell me what I'm doing wrong.)