Bank Charges - illegal?

dchurch24

As an extra thought, if banks did start to charge for services to recoup the loss that they incur by losing the 'ability' to penalise people, that would be an admission, by proxy that they were profiting from breaches of contract and thus open themselves up to the rather more serious charge of 'Obtaining a pecuniary advantage by deception' under the 1968 Theft Act.
The deception being that the charges were to cover admin costs.

berneslai

Apologies if this has been asked already, but I've had my claim to the A&L for charges to be reduced to a more reasonable level (been fined £400+ in December after works salary was late and DD failed and paid item charges have been applied) rejected. I'm currently writing back but am unsure of the time limit to set for a reply (i.e. "if I do not hear from you in xx days I will be forced to reclaim charges at the local County Court". Do I send recorded delivery? Can anyone help?

gothicf0rm

get written proof they reject the claim... stick "letter before action" and "without predjudice" on the top of your letter and i can guarantee youll get a reply from them.

berneslai

I already have written proof they have rejected the claim - they have "thoroughly reviewed the situation and can confirm the charges have been applied correctly".

Thanks for your help.

---lee---

berneslai wrote:

Apologies if this has been asked already, but I've had my claim to the A&L for charges to be reduced to a more reasonable level (been fined £400+ in December after works salary was late and DD failed and paid item charges have been applied) rejected. I'm currently writing back but am unsure of the time limit to set for a reply (i.e. "if I do not hear from you in xx days I will be forced to reclaim charges at the local County Court". Do I send recorded delivery? Can anyone help?

Just a thought, but if your employer paid you later than contracted, is it not their responsibility to make good any resulting bank charges? I’m not saying that the level of bank charges are justified, but why should the bank be expected to fund any shortfall due to your employers error?

berneslai

Possibly - but I think even they would baulk at a £413 bill for little or no service from the A&L. I don't fancy suing my current employer as this would leave me in a bigger financial state than I am now!!

---lee---

berneslai wrote:

Possibly - but I think even they would baulk at a £413 bill for little or no service from the A&L.

They may have more clout to get the charges down or cancelled.

I don't fancy suing my current employer as this would leave me in a bigger financial state than I am now!!

I can appreciate that - no harm in asking them to help out though, after all they have exposed you to financial hardship.

You would hope that banks would be more helpful and understanding in situations like this, but I suppose if you look at it from the banks point of view, why should they pay for your employers mistake?

dchurch24

I would give them 7 days to refund the money - if an org. that size cannot get that sorted within 7 days, then they really have no right being in business.

ajbaker

Having spent several hours reading through this thread, I would appreciate comments on my scenario - which is similar, though not as severe, as several others who have posted.

I have held my Halifax current account for 2 years, never been subject to fees for breach of T&Cs before and frequently made use of my agreed overdraft. Always returning to a positive balance within the month.

Within the last 6 months I got an American Express credit card to get the cash back at 2%. Always paid off the full amount by direct debit every month.

Just before Christmas I had to extend my Halifax overdraft for one payment due to not realising how little I had in the account. After this I intentionally did not use the account until my next pay cheque which took me into a £1000 credit on 2 Jan 2006.

However I had not realised a direct debit of £242 for the Amex card was due to leave the account on 27 Dec. Since I only had £200 left on the overdraft the DD was rejected. Halifax have charged me £39 and Amex £25 for the priviledge. I have not incurred any further charges in interest or late payments as a result.

While I understand my mistake and am happy to pay a small charge, I, like many others, feel £64 is extortionate.

Do people feel I am in the right to question the charge with them using the material in this thread? The fee has already been taken from each account so I cannot refuse payment but will dispute the payment with a view to recovering it. Since this is a relatively small amount would this be viewed differently should it get to court?

ajbaker

Good gracious, that was surprising.

Having posted the above as the first part of my quest to recover the money, I phoned the Halifax. After speaking with my first 'rep' I was directed to her manager. Having mentioned my complaint, she seemed unwilling to budge. However after suggesting the charge was 'unfair' given my good history with the bank, and that I would like her to consider waving the charge, she agreed. No questions; though I was reminded it was a 'good will' gesture!

I was expecting a bigger fight to be honest. My sympathies for those who haven't had as much luck with the bank - I do believe it is purely down to the 'rep' you speak to and not any particular approach you take as a customer.

However my question and complaint with Amex still stands. I have already spoken with them and they have refused to budge. I'm surprised they have such a reputation on this site - there product may be reasonable but customer support is horrendous, and very difficult to communicate with (not English).

Thoughts still appreciated.