Getting Bank Charges Refunds

In a decision by the high court yesterday, the decision to cap bank charges was upheld by the High Court. Seven Banks and one building society had taken the Office of Fair Trading to Court; they argued the OFT did not have the right to impose caps on bank charges. However, the High court found in favour of the OFT and this presents a big boon to consumers, who are will see lower bank charges. It also opens the gate for consumers to demand refunds for previous bank charges.

However, the big banks such as HSBOS may challenge the court ruling, they have until May 22nd to launch an appeal. Given the state of the financial markets, banks are likely to take any lifeline to defer the decision. However, the most likely occurence is that bank charges will become lower, Which magazine have called on banks to admit defeat and start paying back the estimated £1 billion. To benefit from this ruling, it is essential to contact your bank and ask for a refund for any bank charges.

How To Get A Refund for A Bank Charge.

If you have been charged excessively for things such as going overdrawn. Make a list of all the bank charges by looking at your statement.

In the first instance you should write to the bank, stating what you were charged. Then ask for a refund of the excessive amount.

You should go back for the last 6 years, looking at all the bank charges you may have been charged for.

• Bank charges typically affect the lowest income groups and those with the least access to credit. Bank charges can be a powerful way to compound debt and can make it very difficult to pay back overdrafts.
• Although, in the future bank charges are likely to be cheaper. The banks will still be able to charge some amount, possibly £20-£30. It will also affect your credit rating, so it is advisable to take all possible steps to avoid using an unauthorised overdraft facility.
• According to the Times database, banks make £111 every second from overdraft charges.
• However, there are 1 million customers awaiting refunds for upto £800 million.

Related

• How To Write A Letter of Complaint to Your Bank
• Complaining to your bank