Bank Charges - can someone check this please?

Ivrytwr3

Hi all,

I see a lot of MSErs are fighting and winning their cases to claim back their bank charges. My wife would like to do this but would like your expert opinions!!

Here is a letter i have seen used as a template, can anyone see anything wrong or something i should be adding?

Also who do i need to send the letter to? (We are with HSBC).

Dear Sir/Madam

PENALTY & UNFAIR CHARGES – REQUEST FOR REFUND FOR MRS xxxxxxxx, Account numbers xxxx AND xxxx

I have been charged the following by your bank:

a. Account: xxxxxxxx; £20 charge raised on 14 Aug 2005 for been £49.35 overdrawn for approx 2 days.
b. Card No xxxxxxxxx; 2 x £20 charges raised on 8 Jun 05 for late payment of 7 days and 4 days respectively.

I am of the view that your charges represent a penalty and are therefore irrecoverable at common law. In the Scottish case of Castaneda and Others v. Clydebank Engineering and Shipbuilding Co., Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract. This is also the position in English law: Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79. Your charges do not reflect any actual or real loss, instead they appear to represent a lucrative profit-making scheme.

On a separate note, your charges appear to represent an unfair term of contract which is contrary to the Unfair Terms in Consumer Contracts Regulations 1999 (SI. 1999/2083). My account falls within the ambit of Regulation 5 of the Unfair Terms in Consumer Contracts Regulations 1999 as I am a consumer. Your charges constitute an unfair penalty under reference to paragraph 1(e) of schedule 2 of the said regulations:

‘Indicative and non-exhaustive list of terms which may be regarded as unfair - 1. Terms which have the object of effect of - (e) requiring any consumer who fails his obligation to pay a disproportionately high sum in compensation’.

0n 26 July 2005 the OFT stated that 'a charge is likely to be disproportionately high if it is more than a court would be likely to award if the lender sued the cardholder for breach of contract'. Because your charges include a lucrative profit margin, in addition to actual loss, they are irrecoverable as an unfair term in contract.

I believe that your charges require me to pay a disproportionately high sum in compensation for being overdrawn without mutual agreement.

Please refund these charges to my account within the next 7 days, or I will commence court proceedings without any further notice.

Yours faithfully

Narva

hello, i have sued successfully a alrge bank, and the letter you have written looks fine, they is a long thread on the current acc thread that has links to another site which has a library of letters. Sorry i cant do links other wise i would put it on here. Best of luck.

Ivrytwr3

thanks, do i write to my local branch or their head office?

lewt

I think it's local good luck and dont except half!!!!!!!!!!!!

hilla_2

I have got to stage 6 on getting my son's bank charges back for him. I am getting a bit worried now that we will loose in court. What do you think we should do press on or give up?

Tashja

Press on !!!

T xx

moonrakerz

hilla wrote:

I have got to stage 6 on getting my son's bank charges back for him. I am getting a bit worried now that we will loose in court. What do you think we should do press on or give up?

Don't worry - three days after I got a notice from the Court saying the Bank would contest it - got a cheque for my claim in full - including £200 for my costs !
It won't go to Court.

hilla_2

how can you be so sure. The next stage is to fill out a questionnaire. Shall I do that and call their bluff? They seem to mean business. We received a very full letter back. How can I get help and advice from the forum on this.

hilla_2

moonrakerz
which bank do you bank with. Do you know what LLoyds TSB's record is on this?

moonrakerz

hilla wrote:

how can you be so sure. The next stage is to fill out a questionnaire. Shall I do that and call their bluff? They seem to mean business. We received a very full letter back. How can I get help and advice from the forum on this.

Respond correctly to anything you get from the Court. Anything from the Bank - your answer is:- "pay up or I'll see you in court".

Read the hundreds of posts on this site,in numerous threads, how many have actually got to court ? They are trying to bully you into giving up and going away - DON'T.

moonrakerz

hilla wrote:

moonrakerz
which bank do you bank with. Do you know what LLoyds TSB's record is on this?

A & L.

Sorry, don't know !