Could This Work

trademark

http://www.govanlc.com/pro-forma%20letter%20to%20bank.htm

Just been trying to help out a work collegue and came acoss this letter , use the front of the link to get to the homepage

any comments would be appreciated ... the chap i know has been charged £760 in fees since early sept ..hes £600 overdrawn , granted hes stupidly ignored the situation but ,

outragous surely

Amba_Gambla

I know nothing about law - looks interesting, but you might just get a lawyers letter in return (and be charged for it too!!)

Shadowplay_2

Hi,

You would need to research the actual cases and check the legal documentation outlined. Also only include the last sentence if your willing to start legal proceedings against 'a bank' without any further notice.

sportbeth

IT worked for me. I got £821 from the woolwich refunded earlier this year and it was all interest and charges.

Go to https://www.bankchargeshell.co.uk and sign up to the forum on there, I found everyone there very helpful.

trademark

sport beth thats brilliant ..... i came across this idea as i have had letters for bank charges in the past and every time i complained i got my money back ... without question ?

i thought it strange so decided to do some research ...

just wish i had some heavy charges so i could claim them back .. :doh:

Bilgeman

I presume if this went to court the bank or financial institution would have to declare what proportion of the charges related to actual costs incurred and what amounted to a penalty, if they were to admit to the allegation anyway. It would be interesting to hear more about real life cases regarding this. I assume that it would only be penalties and not interest that would apply, unless that interest could also be proven to be excessive. Sorry if this is babbling, I'm no expert.

BWZN93

It would also appear that he has run up a lot of charges in a short space of time, he is clearly not blameless here and as the law states that a disproportionately high sum cannot be paid - it does not mean that the whole charge is wiped out.

How much is he overdrawn by each time he gets charged? how is he doing it? (bouncing chq's and dd's? - If so - this is not simply going 18p overdrawn as in another thread - this is quite a serious breach of the t&c's and I personally feel that you shoud get charged for bouncing chq's and dd's all over the place - if you know you dont have the money - dont expect the bank to fund you - either get an authorised od or call the company's and ask for the dates etc to be moved, or learn to budget properly).

Anyway - before this turns into a rant at the irresponsible you might want to consider some of the wording of that letter. Has he asked for the charges to be refunded already? That letter should be used only when all avenues have been exhausted and you really feel justified that the fees are extortion in comparison to the unauthorised debt accrued and if you really can seek the courts help - which wont happen unless you have been through the financial ombudsman first (months and months of time). Your letter will make him look like he is desperately clutching at any straw and they will see that.

Finally - a rant at the irresponsible - I see you people every single day and I am sick and tired of explaining everythign you were already told when you opened the account. If you set up a dd or write a chq, only do it knowing that you have sufficient funds to clear it. People have a habit of opening current accounts and setting up mobile phone and sky tv dd's - then bouncing each and every one - and then wonder why they have been charged. Well - its time to grow up and budget and live within your means like everyone else, and dont expect those who are organised enough to pay their bills on time suffer lower savings interest rates etc to keep the bank running.

Jo xx

trademark

JO ... im in full agreement , i rarely go overdrawn and im also unhappy with interest rates .... if a person goes OD then the bank incurrs a loss , why ? well because as we all know they can not invest that money themselves and also because they will have administrator costs .

but: are they making a profit from this persons misadventure if you like ..... this is the question we need to ask ourselves , look at an average banks annual accounts and profits , they are usually truly obscene , this chap that i work with is 20 and has not managed his finances well at all , he deserves charges as he knows the limits the bank has set on him .

but i still maintain that charges of nearly £800 on an average debt of £600 are well over the top , yes the bank has a loss to recover and i hope in this case and others they show common sense .


finally i hope i was not included in your rant ..... believe me im far from being in debt , pay my way and as ive said believe in bank charges .

sportbeth

Bilgeman wrote:

I presume if this went to court the bank or financial institution would have to declare what proportion of the charges related to actual costs incurred and what amounted to a penalty, if they were to admit to the allegation anyway. It would be interesting to hear more about real life cases regarding this. I assume that it would only be penalties and not interest that would apply, unless that interest could also be proven to be excessive. Sorry if this is babbling, I'm no expert.

With me it was interest and charges that were refunded. They gave in before it needed to get legal as well, I just stated in my correspondance that I knew of the legislation on penalty charges and they refunded everything before going to court.

I know people will get all moral on me now by saying I should cough up but £821 in charges and interest for losing my job is unacceptable, particularly when I am still sorting out the charges from all my other creditors.

sportbeth

Sorry, in addition, to answer Jo's comments, I didn't have an overdraft and the day before my direct debits were due to go out my employer shut the company down and left me £3500 down on my wages. I didn't have the chance to sort out any alternatives, I went into the bank branch in tears and they said they couldn't help me. I was in such a state that I didn't even think to cancel the DD's.

So, £821 in debt from the bank when I never owed them a penny? Everyone has circumstances, i just wanted to point out mine in case I looked like a blagger here!

BWZN93

Sportbeth and Trademark, my comments in my rant were certainly not aimed at yourselves, as it was not your irresponsibility that caused the problems. I work in finance and would be more than sympathetic if you were to come in to my work and I would do my best to help. I have helped many people in the past by getting charges etc cancelled because they have had the decency to come in, talk to me politely as if I am a human being, and ask, not demand, if I can help.

I have incurred charges myself when circumstances outside of my control have happened, and when I was very young, spent £400 of my student loan repaying charges through my own irresponsibility (which was actually essential living costs but thats by the by). However, I did not go to my bank and rant and rave at the poor customer service people about charges and threaten court action. My bank have been more than fair to me in times of need.

My comments were aimed at those who simply seem to think that bouncing several dd's on 'luxuries' like sky tv and mobile phones, and then wonder why they are not going to get helped when they have a go at me as if it was my fault - its in the terms and conditions and although it may be unfair, I dont think that the banks should be letting people continue irresponsibility. After all, if a bank makes an error, then you would expect at least an apology, and sadly, many dont think that it works the other way around.

My rant was aimed at those who blame others for their errors, fail to see that they are responsible for themselves, and have the nerve to rant at someone at their place of work and intimidate them when they deserve a good sharp talking too. Sadly, this happens everyday where I work.

On a positive note - today - a polite person who chronically breaks his repayment agreement was helped today because he asked politely and at least had the decency to explain himself and apologise. I helped him, but also managed to convey that he couldnt do it again and he must take care of his finances. That felt good!

No offence intended!

Jo xx