Bank Charges - illegal?

dchurch24

Victors_Bruvver wrote:

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

No!! You'd think after 80 odd pages we might have realised that ;-)


- sorry, couldn't resist -

davilown

Victors_Bruvver wrote:

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.,

Thanks for the post but does anyone know what the outcome was after the three month period that the credit card companies were given to address the concerns of the OFT?

:beer: monster

inmypocketnottheirs

mountainofdebt wrote:

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!

You would need to serve the court papers at their registered office, which will be on any letter you have received. If you visit https://www.bankactiongroup.com you will find there is a spreadsheet posted in the library section. You will need to register, but you will find a lot of useful information and support there.

Hope this helps.

Edited to say that you can claim 8% compounded interest from the date of the charge, so if you were charged £30 on 1st Jan 2004, you could compound this interest at 8% until the date you commence action. The spread sheet will help you calculate this.

Good luck

inmypocketnottheirs

dchurch24 wrote:

No!! You'd think after 80 odd pages we might have realised that ;-)


- sorry, couldn't resist -

Thought the same :rotfl:

mountainofdebt

inmypocketnottheirs wrote:

Edited to say that you can claim 8% compounded interest from the date of the charge, so if you were charged £30 on 1st Jan 2004, you could compound this interest at 8% until the date you commence action. The spread sheet will help you calculate this.

Good luck

Oh my gawd......we could be talking well over £3000 here then!

The other thing which is really strange is that I have tried to find out hubby's balance using the telephone banking service and it keeps saying that the account details are invalid - and I know I've input them correctly.........

dchurch24

davilown wrote:

Thanks for the post but does anyone know what the outcome was after the three month period that the credit card companies were given to address the concerns of the OFT?

:beer: monster

Yes I do.

They did nothing, the OFT did nothing.

Stephen, the moderator of our forum is going to a meeting with them tomorrow to discuss their inactivity.

If they still do nothing, then we will be staging a protest outside their Fleet Street office on 3rd March.

JasonW_2

If I lived anywhere near, Id join in, but good luck with this. I love stuff like this when there is a genuine reason for protests and publicity. Who wouldnt like to see banks squirm?

J

deary65

If some one could dig out the treasury report, mentioned in the moneybox programe where the banks admitted how they calculate thier charges.This would be good evidence to put before a court.

kaznelson

I think they may be referring to the Late Payment of Commercial Debts Act 1998.

You can claim 8% of top of the Bank of Englands Basic Interest Rate.

http://www.payontime.co.uk/legislation/legislation_main.html

I think you will be only to claim this if you are a trading as a business.

carlih1 wrote:

Hi

a friend of the family was round today at my parents house, she is a barrister, and a very good one at that, my dad was talking about taking someone to small claims court as they owe him money. We were talking about interest and she told me it was 8% OVER the banks interest rate! So depending on the interest rate of the bank if it was 18% you could charge 26% if it was 10% you could charge 18%

Thought this may be of some help.

c

dchurch24

deary65 wrote:

If some one could dig out the treasury report, mentioned in the moneybox programe where the banks admitted how they calculate thier charges.This would be good evidence to put before a court.

A transcript of which is in the library section over at https://www.bankactiongroup.com.