Reclaiming Bank Charges - Is it a get out of Jail Free Card?

Alleycat

YorkshireBoy wrote:

Would you say you 'robbed' (or attempted to rob) the bank when you took (or attempted to take) money that wasn't yours? Did the bank call the police?

If I was intentionally and wilfully trying to rob the bank then yes they would be entitled to use the law to reclaim any money that had left my account. However as others have pointed out it is not as simple as that. Employers sometimes pay us late, banks make mistakes like refusing a dd for £176.50 when I had over £600 in the account ready for this and the other bills that were due, incorrect information on the ATM, telephone banking and internet banking. Also mistakes happen like having two identical cards for different accounts and using the wrong one to pay for some shopping at the supermarket, miscalculating how much you have left and withdrawing a tenner (the banks can stop you being able to do this, but aha, why would they when they can charge you a £38 overlimit fee and a further £20 card misuse fee). None of this is wilful theft from the bank and even if any of the charges were due to this, then the banks should still be expected to follow the law. There is no justification for the banks knowingly flouting the law as they have and are still doing.

There are many threads on MSE where customers are having their accounts closed by the lenders. Some people are very scared to actually file a claim now because...

1. They cannot afford to repay their debts (overdrafts are repayable on demand).
2. Their credit ratings are such that they can't even open so-called 'parachute' accounts.

The repercussions will be severe - even if you are allowed to retain your account. For example, only today someone reported (on the credit card forum) losing their 0% rate and having their credit card interest rate hiked up to nearly 30% for 'threatening' to legally challenge late payment fees of £50.

If the banks close peoples accounts merely for threatening or embarking on reclaiming their charges then they are abusing their discretion to close accounts that are being run with disregard to their terms and conditions and can be challenged. The only difficulty is if an account has been badly mismanaged as it would be difficult to argue that a closure is abusive as it is ones word against another. People who want to reclaim their charges need to think seriously about what they are about to do. Opening another account with a different and not linked provider is essential if you don't already have one. Even people with CCJ's or those who have filed for bankruptcy should be able to open a basic bank account with at least one provider. If they are still struggling then they should contact CAB for advice. People on benefits can open a Post Office account.

I've said it before and I'll say it again, the banks will still make the same money - and the same poor and disorganised amongst us will pay.

But not necessarily to the same extent that we have paid over the last 6 years (and more). The banks are entitled to charge something for going over a limit or missing a pay date on a credit card, but what they are doing now is quite simply unlawful and they should and thankfully are being challenged on it.

carlih1

Personally i don't see the point of poisting this, only to cause upset and arguements. Fair enough but if these charges were legal then the banks wouldn't have paid any of them back and challenged them in court.

Instead they profit from a charge, which is illegal.

The fact that the op has never had a charge is in his/her favour. How would they like it if suddely they had no income and the bank lunged them further into debt??

Sometimes people have to realise that circumstances are out of our hands and we do what we have to to get by.

Carli, - sucessfully relaimed £2,200.00 charges so far. Off of companies who think it is ok to take money off a young struggling family.

duncans-mum_2

:j Well Done Carlih.

To the OP. Well done for never having any bank charges. I geniunely have respect for you that you have managed to look after your money so meticulously. I do woder though, that if you had indeed had the misfortune for whatever reason to have racked up large amounts of charges, that your opinion may be different. As for the lifeline, although some peoples reclaimed charges may not amount to large sums of money, others may be a great sum that will certainly help in clearing there debt. After all, as the banks have been paying up so far, surely there is a reason for it ie we are in the right. So.. if you were drowning and someone offered you a lifeline, would you refuse? Would you only have yourself to blame for falling in the water?I for one do not feel guilty in trying to reclaim my money, that now turns out to be mine anyway.

Kevicho

It amazes me the amount of people who come on here giving us this rubbish

Whether you like bank charges or not the credit consumer act says any charges that are deemed punitive are unenforceable in the court of law, any other argument is irrelevant.

These charges are purely a profit making venture by the banks, a charge of say £1 would be a fair reflection on the costs the banks go through

Let me see, (costs in a kind moment)

25p Postage stamp
50p for the paper (and thats me being generous there)
25p for a tip for the mailroom boy (who incidentally doesnt get this anyway)

Reality is

Bulk posting means that banks pay next to nothing for postage per letter.
All letters are processed automatically, within systems the banks allready use for other issues.
Letters are a standard template with the signature printer on
Most accounts these days are online only, which means again systems that are in use for the majority of their banking system are used.
Maybe that costs them storage but that is for the bank to pay for as running costs

So far ive not seen one argument in favour of the banks.

All we get is a load of claptrap ranging from the banks need to cover there costs to morons saying the poor should pay for their free banking.

Kevicho

TheAble wrote:

Hi All

I know this is going to rub some of you up the wrong way


Not really, your just proving to us all how ignorant you are, do some research man before posting this rubbish

but I have to say I don't think there's anything wrong with banks charging as they do.

There credit consumer law would disagree with you

I know there's a lot of people who reclaim their bank charges but let's be honest - the fact that you can do this relatively easily is a lifeline for you!

Reclaiming money that has practically been stolen is not what i would describe as a lifeline.

I've never ever had a bank charge in my life

Congratulations, i sincerely applaud your great money management skills.
You have obviously never been paid late, had two lots of debits come out at the same time mistakenly, had the bank make a balls up, or any other of the thousands of reasons, that every day life has caused, for someone to receive a "punitive charge", none of which you have accounted for in your bubble of snobbiness


because I've been meticulous in making sure I avoid them - so more fool you if you haven't.

More fool you for spouting this c***, the banks are stealing peoples money, also they are making life harder for there customers by compounding the charges to rediculous levels.
Im hope you make a nice level of interest by being in the black, all of which are paid for by peoples misery


You signed on the dotted line accepting the ts and cs of your account, so I'm sorry but if you've racked up the charges you've got nobody to blame but yourselves.

If you sign on the dotted line to murder someone, if its against the law, it is unenforceable, do you know anything about contract law? Because these charges are PUNITIVE, which means they are unenforceable


Discuss!

Im sorry to rip your entire post to shreds, but ive remained polite, which considering your post, is quite an achievement, but please in future have a read about what you intend to talk about

You wont look like such a wally then

All the best

Kev

briona

TheAble wrote:

I've never ever had a bank charge in my life because I've been meticulous in making sure I avoid them - so more fool you if you haven't. You signed on the dotted line accepting the ts and cs of your account, so I'm sorry but if you've racked up the charges you've got nobody to blame but yourselves.

I've never had any bank charges either but I don't think this issue is as black and white as the OP paints it...

A family member used to earn between £800 and £900 pm. Each month, she ran out of money, partly because living and working in central London whilst trying to service minimal debt on a paltry wage is not easy. Despite her best efforts, she went overdrawn each month. The bank, despite requests, wouldn't give her an authorised overdraft but instead preferred to charge her crazy sums each month this ensuring that for the following month she would be in the same situation. One horrible month she was hit for almost £900 worth of charges [!!!] – some for the unauthorised overdraft, and others as a result of these charges which meant that her direct debits bounced.

TheAble wrote:

so I'm sorry but if you've racked up the charges you've got nobody to blame but yourselves.

...except maybe the banks!

So while I personally have never had any charges, I could not possibly condone the behaviour of a bank who sees fit to charge a person their monthly wage in illegal charges! How is anyone EVER meant to even survive, never mind become better with money when stuck in this cycle? :mad:

I'll get off my soap box now... [creeps quietly away]

Briona

domestic_goddess

I genuinely admire the op for never having any bank charges,
I myself have had many. If its a choice between feeding the kids and letting a going overdrawn..... what would he pick. Many on here have had to make that choice and the banks have unlawfully charges extortionate amounts.

The OFT have reccommended that the banks cut their charges and most banks will follow these guidelines - this tells us that the charges were too high to start with.
No banks have yet been able to break down the costs of their charges to justify the amount - this tells us that the charges are probably unlawful.

I do agree that there should be a charge as without some form of detterent a lot of people would go overdrawn or allow direct debits to be returned without a thought. £12 will be fairer I think, I know a lot of people who have not been charged complain that because we are reclaiming our charges that everyone will suffer by having to pay for banking. I for one would rather pay £10 a year and know that all customers are being treated fairly and lawfully than know I am being hit with unlawful charges.

Sorry to waffle

melancholly

I think the sentiments of the posts above pretty much cover what I have to say!

I've never had to have a bank charge either - but I'm not going to come onto a board for people in debt and gloat about it..... it's just not pleasant or necessary.

I have had a card refused when the bank 'forgot' to authorise my overdraft, even though I had written confirmation from them that they had. I kicked up an almighty fuss and got paid £30 in compensation. The problem is, that you make a mistake and they charge you automatically, they make a mistake and you have to shout and scream to even get them to say sorry!! (And the payment that was refused was for an eye test - incase the OP thinks people who don't have accounts in the black are just spending money on stupid things).

Kevicho

sickofhavingnomoney wrote:

£12 will be fairer

12 pounds is still too much, the banks should be made to justify there costs and then stick to that figure.

Banks have a privilidged business role in society due to having accounts being a necessary evil in todays society.

At the moment they are plainly abusing this privilidge for there own gain.

Its about time the OFT and the government took firm action on this instead of !!!!! footing around.

Kevicho

Also they shouldnt be allowed to make any charges because of people going overdrawn thanks to their charges