Bank Charges - illegal?

dchurch24

There is one at the CAG - you just have to read the FAQs to find it.

http://www.consumeractiongroup.co.uk/forum/showthread.php?p=46767

Is where someone has posted a version that will fit.

barry_marr

I've been charged a late payment fee of twenty pounds on my American Express card. What do I do?

Pay it and claim some back or not pay it at all?

Thanks in advance

DJ_Tazzz

Well, after finding this site and reading through the many pages of postings and answering of my many questions, I decided to pursue my bank Lloyds TSB Plc for a refund of these penalty charges over the last 6 years, well since I opened my account with them in March 2000. I have found this site quite insightful and after checking the information advice that has been given with the relevant laws etc. I decided to initiate a dispute.

As it so happens, I had a current dispute open with the same bank already with regards to PPI on my loan which I was practically forced to take out. It turns out that due to my circumstance, I was miss-sold the policy as I am not ever in a position to make a claim against it should I ever loose my job.

The run through is as follows:

• I initiated a request for information under the Data Protection Act 1998.
• I then decided to get the ball rolling by sending them a letter stating my intention with reference to the first request.
• They have replied to the request and the second letter stating that I would not have to pay the £10 for the information and told me to get lost with the accusation. (This is what I expected so no surprises there).
• They then sent me double of another response but now requesting authority to deduct £10 from my account and telling me that they had 40 days from when they receive payment.
• I then responded stating that they had already said that they were not going to charge me and that I was only interested in the actual charges and not all the copy statements for the said time. I also said that I expected the information by the 25th May 2006 which is the 40 days they are allowed.
• I have already drafted a claim on https://www.moneyclaim.co.uk to submit when the time comes. Yes, I would not mind going to court with them, just would not mind some information in case they get sneaky on me but then, I don’t expect them to if their responses are anything to go by.
• I have got to a stage with my first dispute where they have offered me a chump change settlement which does not nearly cover my true cost and have basically told them that I am just going to progress the matter through the Financial Ombudsman Service for an independent decision as they have already agreed that the principle element of the insurance did not cover me and then tried to make a smoke screen about some other inclusions which I find irrelevant.
• I am about to go holiday for a week so will be glad to come back and file my claim as this would just about coincide with when they are expected to provide the information I requested.

I can only say that my trouble all those years ago were only compounded by the huge fines I was paying when I first joined the bank. Every month just got worse and worse but now that I understand that these charges are questionable, I am only ever more determined to get my own back. Since the bank has already suggest that I get lost and find another bank to do business with, I did and have decided to go to Barclays as they compare similarly with services etc. It also helps that I used to use them and did not have many problems.
I just went online and just simply applied and they do everything else.

I would like to commend dchurch24 for all his efforts in publicising all this information and I respect someone like him for offering his experience, advice and opinion to help people in their challenges.

I will keep you guys posted with the progress although I anticipate a long drawn out dispute. So, good luck to everyone.

maforduk

Good Luck DJ Tazzz.
I'm about to fill my claim and file it with the courts to.
I'm exempt from Court Fees so have to be done manually.

DJ_Tazzz

Just in case you were wondering, I am unable to determine how much to claim with Lloyds TSB in respect of the penalty charges but know I was paying out anything up to £200 each month and largely due to failed payments and going over my limit. I would put an estimated figure of £3500 plus a guess of £1,200 interest although it could be more or it could be less.

My dispute in respect of the miss-selling is quite serious and amounting to £6,025.32 as of the 10 May 2006. This increases each day as I had to take the insurance as part of the loan so therefore pay interest on it daily. I have built a excel spread sheet to track the value so have a fair idea of its nature.

moonrakerz

DJ_Tazzz wrote:

and have basically told them that I am just going to progress the matter through the Financial Ombudsman Service for an independent decision

Could I suggest that you don't go through the Financial Ombudsman ? - he has limited powers in this area. My bank suggested that I took my claim (for refund of charges) to the Ombudsman - this is purely a delaying tactic to make you get bored with the whole thing and give up. I ignored their "advice" took out a County Court Summons and they paid up (including my costs) before it got to Court.

DJ_Tazzz

Moonrakerz,

I think there may have been a mix up, I am not taking them to the Financial Ombudsman Service for the Penalty charges refund, I will eventually take them to court for that. I have sent them a final letter before legal proceedings to prompt them a bit but I seem to think they will wait until they served with the notification before they start taking me seriously.

It is the other dispute for miss-selling me an unsuitable insurance product that I have to go through to The Financial Ombudsman Service as I don't know of any other progression at this point. I am aware much of the banks correspondence to me has in some shape been delaying tactics to get me bored but I am fairly determined in light of the sheer cost I have been burdened unnecessarily with.

Good Luck with your dispute

moonrakerz

DJ_Tazzz wrote:

Good Luck with your dispute

Thanks !

I've already won round one - I'm starting on round two now.

Good luck yourself.

arbrctb

Hi,

I'm fairly new on here, and to the idea of claiming back fees from banks and any advice would be appreciated.

I have on several occasions received refunds for bank charges after writing into my bank, the largest refund amounting to just over £100. I've just been charged £38 again by my bank for a bounced direct debit due to my overdraft limit being exceeded - even though, after having checked my account online, I went down to my branch and paid cash into my account to cover the transaction several hours after the direct debit had been requested from the bank. In effect, I have been charged £38 for a few hours worth of credit!

I sent another carefully worded letter to the bank on this occasion and they've refused to refund me on the grounds that the bank has "acted fairly" and that I was warned that "all further charges would stand" following the previous refund.

Is there anything else I can do? Are there any other arguments I can use? I don't want to take it to small claims because it's such a small amount and I don't have the time. I'm also concerned that the bank may choose to withdraw its services/close my account if I did this and won, because I notice that they are within their rights to do that.

I'm in agreement that the current charging system does penalise the worst off - I'm currently at university and £39 is money I really cannot afford to lose and ironically, only deepens my debt even further and the bank knows this. There is no reason to charge £39 for a bounced cheque - there is no service or credit being provided to me. I also hold a grudge against HSBC - I was only 17 years old when they charged me around £30 for a bounced cheque (of the same amount!) to a driving instructor! They refused to refund this when I asked them because they were "within their rights". No doubt this was illegal, but at the time I didn't want to challenge it - this has to be one of the best examples of taking from the poor to pay for the rich!

Any advice would be appreciated.

Adrian

ajbaker

barry_marr wrote:

I've been charged a late payment fee of twenty pounds on my American Express card. What do I do?

Pay it and claim some back or not pay it at all?

Thanks in advance

Barry, Amex charged me £25 for a returned direct debit in Dec 05. It took several phone calls and two letters over a period of 4 months but they eventually agreed to the refund.

I would imagine they have already taken the £20 from your account, so your only option is to get the refund. It will take time, but do not lose hope and stick at it.