Bank Charges...

  irishrapter 00:12 18 Dec 06
Locked

Dont know if this has been posted before but I let you all know anyway.....

Penalty charges can be incurred for the following: unauthorised overdrafts, unpaid items such as cheques, direct debits or standing orders. These are also known as returned or bounced items.
Currently there are thousands of people who are in the process of, or are about to be claiming their charges back.

You may ask how can you claim these charges back and more importantly why the banks would pay them, basically in comes down to the fact that the bank cannot charge you a fee for something that does not cost them anything.

In other words they can only charge you for what it cost them to process the returned cheque or direct debt, the banks have been asked to prove these costs and so far they have failed to show a break down of these costs. The real cost of processing these returned items is estimated to be £2-£4, not £35-£40. This violates “Unfair Terms in Consumer Contracts Regulations 1999”

What the Unfair Terms in Consumer Contracts Regulations 1999 No 2083 states:
Schedule 2 Indicative and Non-Exhaustive List of Terms which may be regarded as unfair.
(e) Requiring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation.

When thought about logically it is technically theft/deception, which requires dishonest taking of property (including money) belonging to another with the intention to permanently deprive. If a person was found guilty of this in criminal law they would face jail, yet under civil law which controls penalty charges, banks and other businesses have been told their charges are contrary to the law yet they are not even stopped let alone punished.

You can claim the last six years of charges, or five if you live in Scotland.
Some lenders have threatened to close the accounts of people after they have claimed back their charges. This is rare and unlikely to happen but if you are worried you should open an account with another bank, just in case.

Here are some links for more info...

click here for a link to the BBC Money Programme about bank charges.

click here for a consumer site about bank charges.

  GANDALF <|:-)> 09:59 18 Dec 06

I always thought that if you go over your overdraft limit you were technically guilty of theft.

G

  Stuartli 11:26 18 Dec 06

This is somewhat old hat as steps were taken to seek to rectify this situation, along with that of the banks taking three or more days to clear cheques and pocketing the interest made, two or three years ago.

Try click here for assistance in seeking to retrieve any excessive charges you feel may have been made.

  irishrapter 17:06 18 Dec 06

I know that the old story about bank charges have been going on for a while now but the action to recover these charges is fairly recent.

If you watch the BBC Money Programme click here
Which aired on the 11-12-06 you will get an idea of what is happening.

If you think how much your bank charges come to in the last six years you could be in for a surprise!

What I would adivse people to do is at least get their last six years statements, which they can do under the Data Protection Act, and add up these charges.

If they then want to claim their money back then so be it!

So far anyone who has claim these charges back have never gone to court, the bank so far cannot justify these charges.

  Teaboy 17:16 18 Dec 06

It's only theft GANDALF <|:-)> if one intends permanently to deprive the owner thereof!

  jimmybond 18:03 18 Dec 06

yes - and if the customers are 'technically' guilty of theft, then surely you have to say that the banks are 'morally' guilty of theft, for the unjustified, rip-off penalty charges.

  irishrapter 18:37 18 Dec 06

It really comes down to the "Unfair Terms in Consumer Contracts Regulations 1999"

What the Unfair Terms in Consumer Contracts Regulations 1999 No 2083 states:
Schedule 2 Indicative and Non-Exhaustive List of Terms which may be regarded as unfair.
(e) Requiring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation.


"Disproportionately high sum in compensation"
This is the main part of it, it doesnt cost the banks £30-£40 for a returned direct debit.
When asked to explain how it costs that much the banks cannot and will not explain it.

In the Money Programme they got together a panel of people, two professors and an ex-bank manager, to try and get a figure as to what the real charge should be.
They came up with a top line of £4.50.

  bluto1 19:50 18 Dec 06

Thanks for that, I`ve a couple of accidental over the tops to look at. (I suppose we all say that. :-))

  harps1h 21:57 18 Dec 06
  irishrapter 23:29 18 Dec 06

thats a very good site!

Just signed up.

  De Marcus™ 23:35 18 Dec 06

then the site you should all be watching is click here

This thread is now locked and can not be replied to.

Hands-on: Samsung Galaxy S8 review

1995-2015: How technology has changed the world in 20 years

Samsung's beautifully designed Galaxy S8 makes for better VR experiences too

47 iPhone camera tips to help you take better photos