Help reclaiming bank charges.

bushfulmight88 · 13 November 2017 at 1:34PM

Hello,

I'm not great with these sort of things. I've been reading all the information regarding reclaiming unfair bank charges etc. I'm interested in doing so as I have been in financial hardship for quite a long time now. With the effect of my banks new/updated OD charges since 2nd Nov, 2017, this is going to make my situation even worse. The new charges are more than double my old charges. Of course I'm trying to pay off these new charges, along with bringing my overdraft down and trying to survive on the little money left every month without going back over my limit.

I know what I have to write about in a letter to the bank but I'm a bit confused on how to work out exactly which charges I am to include so that I can give them a total about how much I am requesting to reclaim. For example, do I include Overdraft Fees and overdraft interest? Unplanned overdraft fees? Returned item fees? Would I include any fees that made me go over my overdraft limit and made my situation worse, e.g. OD fee made me go over my OD limit.

If someone could give me a list of what I can and can not include would be great.

Thanks in advance to any reply's.

[Deleted User] · 13 November 2017 at 2:15PM

Just tell them that you are struggling financially and that you caught in a spiral of charges. Be aware that the Banks won their court case in 2009 over "unfair" charges, so don't make any mention of that word in relation to charges. You should not specify any charges for refund because any such refund will only be a goodwill gesture by the Bank.

If you are in the Bank's definition of financial hardship (no Sky TV, expensive mobile 'phone contract etc) they MAY decide to refund some of your RECENT charges. However, they could instead decide to suspend future charges and or interest for a time or offer a debt management programme.

Remember, above all you need to convince the Bank that you struggling financially, not that they have acted unfairly by charging you. Fail to convince them and you'll receive nothing.

dunstonh · 13 November 2017 at 3:02PM

I've been reading all the information regarding reclaiming unfair bank charges etc.

In which case you will know that the reclaiming of "unfair" bank charges ended in 2009 when the banks won the court case.

I'm interested in doing so as I have been in financial hardship for quite a long time now.

Requests under current financial hardship is not the same as unfair bank charges. under no circumstances should you ever say in your request that the charges are unfair (or words similar to that).

I know what I have to write about in a letter to the bank but I'm a bit confused on how to work out exactly which charges I am to include so that I can give them a total about how much I am requesting to reclaim.

You dont specify an amount to reclaim. The bank will make a goodwill payment based on how deep in financial hardship you. Return is not the only option available to them either. Sometimes they refund nothing but suspend new charges for the next x months. Sometimes they put you on a debt management plan. If they do refund, they typically do no more than the last 12 months. In extreme cases they will go back further.

Interest is not refunded.

Your job is to make your case to the bank that you are in genuine financial hardship and not just spending beyond your means. You should tell them what arrears and defaults you have. How you can't spend money on basic requirements etc. They will look at your spending habits. If they find you buying sandwiches for lunch, McDonalds, buying clothes in Next etc then you are not in financial hardship.

bushfulmight88 · 13 November 2017 at 3:19PM

Thank you both for your replies and advice. I appreciate it. I was a bit confused because in the letter template it said to state the requested amount to reclaim and the interest, along with the success stories stating how much the requested. I think perhaps I should think of an alternative. Maybe contacting my bank and asking if there is anyway they could help me out regarding not being able to afford the new interest charges. I'm not sure if there is anything they can do for me though.

Thanks again.

[Deleted User] · 13 November 2017 at 3:35PM

bushfulmight88 wrote: »

I was a bit confused because in the letter template it said to state the requested amount to reclaim and the interest, along with the success stories stating how much the requested.

The MSE advice article on Bank Charges is confusing and not really helpful. Anyone following it to the letter is likely to be rejected outright.

bushfulmight88 wrote: »

Maybe contacting my bank and asking if there is anyway they could help me out regarding not being able to afford the new interest charges.

As we said above, convince the Bank you are in genuine financial hardship and you may have a degree of success.

bushfulmight88 wrote: »

I think perhaps I should think of an alternative.

You may want to post a Statement Of Affairs (SOA) on the "DebtFreeWannabe" board of this forum. There are lots of helpful people posting there who can suggest ways of getting yourself out of debt and avoiding bank charges in the first place.
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

dunstonh · 13 November 2017 at 4:28PM

I was a bit confused because in the letter template it said to state the requested amount to reclaim and the interest, along with the success stories stating how much the requested.

The MSE bank charges article is out-of-date and really needs an update. Back in the days when you could reclaim unfair bank charges, the redress consisted of a refund of charges plus interest. That interest was credit interest on the refund amount. Not debit interest that you have paid.

Moneyineptude has covered the rest.

bushfulmight88 · 13 November 2017 at 9:09PM

Thank you all. I decided to visit my local branch earlier today to speak to an financial adviser. They’ve helped me sort out my overdraft by completely cancelling it, by taking out a loan. This works better for me because I’m able to make affordable, flexiable and fixed payments in an acceptable timescale, without the interest of overdraft charges, on top of no longer having the overdraft and ending up in the same situation again. Although I’d have to pay back more than I borrowed due to interest, I believe it was the better option for me, as I’d be paying the same amount for overdraft fees as I would the loan, but not actually being able to decrease the OD whilst doing so. Once this loan is paid off I’ll no longer be in debt. I’ll be making sure I’m as careful as possible with money from now on too. Thank you all for your advice it really helped.

[Deleted User] · 13 November 2017 at 9:17PM

The irony is that in many cases people in genuine financial distress aren't offered a loan...

I'm glad you got it sorted, but remember to not become complacent to the fact that you've been overspending. To afford the loan repayments you'll have to reign in your spending...

bushfulmight88 · 14 November 2017 at 12:09PM

It was initially declined through application, however, she phoned the personal loan advisers to explain I’d be restructuring my finances and as it was internal, and somehow classed as a ‘good customer’ they accepted it. I’m hoping to make extra payments as much as possible over the months to bring it down quicker too.

Help reclaiming bank charges.

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