Dramatic court action against 8 UK banks

BankFodder

This should be making the news shortly but here's a heads up.

Stephen Hone, who we are very pleased to say is a moderator and frequent contributor to The Bank Action Group forum at https://www.BankActionGroup.com has dramatically begun an court action against 8 leading UK banks. He is seeking a declaration that the Banks penalty charge regime is unlawful and cannot be enforced.
This is a big risk strategy for Stephen but the stakes are high.
If he is successful then it will mean that the Banks will have to return billions of pounds to rightful owners and also take steps to restore the credit reputations of many thousands of their customers whom they have defaulted over the years
Furthermore, a successful outcome will have implications for all other companies operating similar regimes and their customers.


The Bank Action Group
https://www.BankActionGroup.com

These links are not posted for personal gain

equitydealer

Billions of pounds?

davilown

equitydealer wrote:

Billions of pounds?

Think about it!
£25 by 50 million people = £1.25 billion

beer monster

BankFodder

equitydealer wrote:

Billions of pounds?

Yes - many of them.

gothicf0rm

the top 4 uk banks took 3.5 - 4.5 billion last year in these penalties depending on which estimate you believe. 3.5 x 6 for the statute of limitations is 21.5 billion. this does not include interest they charged on those fees when you were overdrawn nor the 8% per year under the county courts act they would have to pay it. it does not include consequential damages in more extreme cases either. when you include other banks, credit card companies they own and everything else the liabilities of the banking sector could easily reach 50 billion. that said, they make such massive profits it would only ruin a year's results. imagine though the economic effects of returning 50 billion pounds to consumers from banks (many of whom are on the margins of financial trouble) and the effect this would have on both national spending and the levels of personal non mortgage debt - its the equivalent of the chancellor abolishing income tax completely for several years.

davilown

gothicf0rm wrote:

the top 4 uk banks took 3.5 - 4.5 billion last year in these penalties depending on which estimate you believe. 3.5 x 6 for the statute of limitations is 21.5 billion. this does not include interest they charged on those fees when you were overdrawn nor the 8% per year under the county courts act they would have to pay it. it does not include consequential damages in more extreme cases either. when you include other banks, credit card companies they own and everything else the liabilities of the banking sector could easily reach 50 billion. that said, they make such massive profits it would only make a dent in a year's results.

Nice Maths!

beer monster

BankFodder

gothicf0rm

What a beautifully calculated post. Wouldn't you like to post a copy on The Bank Action Group site as well.

As for:-

gothicf0rm wrote:

3.5 x 6 for the statute of limitations is 21.5 billion.

I think that I see a way past the limitation problem so watch The Bank Action Group forum for some exploratory extended liability announcements in the not too distant future!!

moxie_2

This is brilliant news, I wish Stephen all the best and will be cheering him on!

dchurch24

gothicf0rm wrote:

the top 4 uk banks took 3.5 - 4.5 billion last year in these penalties depending on which estimate you believe. 3.5 x 6 for the statute of limitations is 21.5 billion. this does not include interest they charged on those fees when you were overdrawn nor the 8% per year under the county courts act they would have to pay it. it does not include consequential damages in more extreme cases either. when you include other banks, credit card companies they own and everything else the liabilities of the banking sector could easily reach 50 billion. that said, they make such massive profits it would only ruin a year's results. imagine though the economic effects of returning 50 billion pounds to consumers from banks (many of whom are on the margins of financial trouble) and the effect this would have on both national spending and the levels of personal non mortgage debt - its the equivalent of the chancellor abolishing income tax completely for several years.

Sadly, it probably won't happen (I have faith in Stephen and his legal analyis, just not the legal system when faced with unlimited cash and funny hand shakes and trouser leg dances on a Saturday night).

But it will generate publicity, which is what this cause needs.

gothicf0rm

i agree with you. i believe if a judge faced with making a 50 billion pound decision would rule in favour of the banks out of fear of the economic consequences. even if he backed stephen banks would appeal all the way to the house of lords. sadly in britain big business gets what it wants.

cheeky

BankFodder wrote:

This is a big risk strategy for Stephen but the stakes are high.
If he is successful then it will mean that the Banks will have to return billions of pounds to rightful owners

And what if he isnt sucessful??