Bank Charges - illegal?

Pere_Ubu

inmypocketnottheirs wrote:

I think you could be pleasantly surprised! Best of luck.

I read your signature claiming back for standard processing of documents. I have recieved a statement from Asset Link and they have charged me 2 £50 for "service of default notice and calling in letters" £130 litigation fee. How do I challenge this? Would appreciate it if you could tell me a wording for a letter I could use. Thanks

dchurch24

Pere_Ubu wrote:

I read your signature claiming back for standard processing of documents. I have recieved a statement from Asset Link and they have charged me 2 £50 for "service of default notice and calling in letters" £130 litigation fee. How do I challenge this? Would appreciate it if you could tell me a wording for a letter I could use. Thanks

Firstly, I would write them a letter outlining the law regarding consumer credit agreements, and then ask them to justify their charges.

It they cannot or refuse, then tell them that you will let a court decide it.

It's time to get tough with these b*stards - they don't hesitate to do it the other way around. While I don't advocate a litigous society (and some will argue this based on my previous posts) the courts were there to protect us as much as them - use them - they WILL NOT like it and will probably run scared.

Frugal_Fox

I've just read (well skim read) most of this forum, and it has taken hours!!

We are slowly climbing out of debt, and last year suffered serious hardship. We were due some funds (OH salary - which is paid last thurs of every month), and miscalculated our DD's. We went over our overdraft by approx £50 and in the end were charged over £200. Because they took the funds/charges the following month, we were low on our funds, and again went over our overdraft limit. We were charged again. Once all our bills and debt repayments are made we have approx £200 to live on - for food, fuel, clothes, shoes etc.

Paying these bank charges has caused serious knock on effects. We were late paying other creditors, and it got so bad, I took a mortgage payment holiday of a month, so that I could pay our bank charges. Over the last 8 months our bank charges total over £600 - I dread to think what it would be for the last 6 years.

To cap it all, this was with the Halifax, and when things got really bad, I used my Lloyds account. This is now over its overdraft limit, and because THEY paid a debit card transaction for £10 over my limit, they have now charged me a £90 excess overdraft fee. How in the world can that help me?

I am off to check out the BAG and the Money claim site. My problem is that we currently have an overdraft with both Lloyds and Halifax, and that if I generate a legal claim against them, I will not be able to repay my overdraft immediately. Also because of the charges we were unable to pay other creditors on time, thus damaging further our credit rating. I fear it is unlikely we will be able to open another bank account - so if they close these accounts, we are in schtumm.

Frugal_Fox

Is anyone keeping a record of the number of customers taking action against their banks?

ie -
How far it did they have to go?
How much were they eventually offered?
Was anyone unsucessful?

gothicf0rm

i have an overdraft with the halifax, the overdraft still exists despite having successfully sued them. i think this is because overdrafts are a good way of making money.

Pere_Ubu

Frugal_Fox wrote:

I've just read (well skim read) most of this forum, and it has taken hours!!

We are slowly climbing out of debt, and last year suffered serious hardship. We were due some funds (OH salary - which is paid last thurs of every month), and miscalculated our DD's. We went over our overdraft by approx £50 and in the end were charged over £200. Because they took the funds/charges the following month, we were low on our funds, and again went over our overdraft limit. We were charged again. Once all our bills and debt repayments are made we have approx £200 to live on - for food, fuel, clothes, shoes etc.

Paying these bank charges has caused serious knock on effects. We were late paying other creditors, and it got so bad, I took a mortgage payment holiday of a month, so that I could pay our bank charges. Over the last 8 months our bank charges total over £600 - I dread to think what it would be for the last 6 years.

To cap it all, this was with the Halifax, and when things got really bad, I used my Lloyds account. This is now over its overdraft limit, and because THEY paid a debit card transaction for £10 over my limit, they have now charged me a £90 excess overdraft fee. How in the world can that help me?

I am off to check out the BAG and the Money claim site. My problem is that we currently have an overdraft with both Lloyds and Halifax, and that if I generate a legal claim against them, I will not be able to repay my overdraft immediately. Also because of the charges we were unable to pay other creditors on time, thus damaging further our credit rating. I fear it is unlikely we will be able to open another bank account - so if they close these accounts, we are in schtumm.

Try opening a bank account else where. A basic account still allows you to have salary paid in/DDs/Standing Orders. You may never use it but it's there n case you do require it.

inmypocketnottheirs

Frugal_Fox wrote:

I fear it is unlikely we will be able to open another bank account - so if they close these accounts, we are in schtumm.

I think that the bank would be at a very sticky wicket if they closed your account because you were suing them to get your *own* money back. These are playground bullies who retreat into a corner when threatened, I have every confidence you will get your money, paid in full. I had over £1300 back from the co-op in January, and ther was no mention of closing my account. Don't offer to close it, just demand your money back. There is a general view that banks will just automatically close your account, but I don't think you will find this holds true.

Best of luck.

mountainofdebt

As you may know I wrote to Natwest on behalf of hubby to get over £2600 back (and you wonder why my username is my username!) and they received the letter on 4th February - letter sent by recorded delivery!

Letter from business manager dated 8th February saying that she would contact us again within 2 weeks (so up on 22nd) with either a full response or an update.

So do I wait the 40 days, starting from the 4th or do I just go ahead and make a claim?

If the later, do I send the papers to the branch address or our business manager's address? Also how do I calculate the interest - is it a straight 8% ( ie if the total is £2000 is the interest £160) or is it 8% for each charge starting from the date it was charged?

Sorry for the questions but I do appreciate the help!

Victors_Bruvver

I do not know I this of help to anyone on this particular thread, but I am posting a link to the following website that was mentioned on BBC Moneybox;

http://www.bankcharges.info/

If I have read it correctly, it is unlawful for banks to profit from late payment charges etc.,

dchurch24

Frugal_Fox wrote:

Is anyone keeping a record of the number of customers taking action against their banks?

ie -
How far it did they have to go?
How much were they eventually offered?
Was anyone unsucessful?

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