Bank Charges Reclaiming Guide discussion

SonOf

ben5678 said:

Hi all,

So in the guide it says that if you maybe fit into one of the categories you have nothing to lose by trying to reclaim.

And that by reclaiming doesn't affect your credit rating, however the bank may keep a record of this and refuse deal with you in the future. 

The bank I currently do all my banking with, and I am looking to switch to a better deal, but thinking to try to reclaim before switching as hoping I might have a bit more success as an ongoing customer. This same bank I have just got a 5 yr fixed mortgage with and now wondering if attempting a reclaim with this bank may affect my mortgage with them in anyway. Maybe it won't for the first 5 yrs which it is fixed, but if I update/remortgage in 5 years time and this same bank has a good deal, and usually staying with the same bank reduces the set up fees. Will my reclaim affect any remortgaging potential I will have in 5 years time with the same bank?

Hope that is clear.

Thanks,
Ben

It won't affect your mortgage.  Although if you tell the bank you are in current financial hardship then it may prevent you from borrowing further from them in the short term.

However, if you are about to switch bank then this suggests you are not in current financial hardship (one of only two areas banks consider nowadays - the other is incorrect application of charges).      If you were in current financial hardship then a) you would likely be continuously overdrawn b) unlikely to get credit facilities (i.e. overdraft facility) at the new bank.

So, are you in CURRENT financial hardship?  

[Deleted User]

ben5678 said:The bank I currently do all my banking with, and I am looking to switch to a better deal, but thinking to try to reclaim before switching as hoping I might have a bit more success as an ongoing customer. 

You do realise that guide is hopelessly out-of-date? 
Unless you are in the Bank's definition of Financial Hardship, routine refunds of Bank Charges ceased after the Banks won their High Court case in 2009.

I'm not going to respond in any more detail, read this thread (just a few pages of it) and you will see plenty of information which comprehensively answers your query..

revneil

Quick question on reclaiming interest from PayDay Lenders. Has anyone ever successfully got refund from SAFETYNET CREDIT? And if so, how did you go about it?

k-eastwood

Hello, I have been paying Barclays overdraft charges for years. £90 a month which I know is extreme! But due to a bad credit rating I've not been able to get a good loan deal to pay it off.   I am working hard to get my credit rating improved as I want a mortgage within the next 12 months.  When I last spoke to Barclays all they offered me was to get help, which would affect my credit rating.  Can anyone advise if this is the only way?  The last thing I want to do is harm my already low credit rating.

donz1970

Hi looking for advice please. I posted off a letter using the guides on here regarding bank charges I highlighted all the charges and interest fees on the statements the bank had sent me, they added up to over £8000 to my local rbs on the 21st of January and did so by recorded delivery, I still haven’t heard anything back. I did call one of the numbers and the person I spoke with was thoroughly unpleasant and left me feeling very fragile tbh. I explained my situation, I had a breakdown in the early nineties and developed clinical depression after this. Due to this have been unable to work and have been on benefits since. I’m wary of calling after the reaction I got from the last person I spoke with. Any advice would be much appreciated tyia.

[Deleted User]

You won't get a refund of the interest and fees to date, but if you're still paying fees and are currently in hardship, you can ask them to see how they can support you.

donz1970

I’m no longer paying fees and I have a block on any payments being made without the funds to do so. I am struggling financially though. Is there any point in me taking this any further?

[Deleted User]

No, not from what you say. But pop along to the DFW boards. They can offer help and advice.

donz1970

sorry pretty new to this, what are the DFW boards? Thank you for your help

dunstonh

 I posted off a letter using the guides on here regarding bank charges I highlighted all the charges and interest fees on the statements the bank had sent me, they added up to over £8000

You didnt need to highlight any of the charges.   The banks won the court case back in 2009.  Today, they only consider current financial hardship cases to their current customers.     From what you say, you do possibly have a case for them to consider under financial hardship.   But you are going about it the wrong way.

Financial hardship claims are handled by the complaints team of the bank.   You need to focus on the reasons for hardship and how the current charges are harming your ability to provide for things.  Mention your health issues as they are something the bank will take into account.   You must not state the charges are unfair or words like that.   The bank could  treat it as an unfair bank charges complaint if you do and reject it stating the supreme court case.    You are painting a picture to get the complaints handler at the bank on side.   So, dont use aggressive language or tone.

The bank will likely ask you to fill out a budget of spending.  They will look at your bank statements to look at spending habits.  e.g. looking to see if your claims of hardship or true or made up - not suggesting yours are but some people claim hardship but in reality, they are living beyond their means by having a lifestyle they cannot afford.  Banks do not refund in that scenario.

You will likely have a telephone discussion with them so the bank can understand the issues.    

If successful, the most common outcome is a refund of recent bank charges (typically 3-12 months) and/or a suspension of future charges for a period and possibly being put on a debt management plan.    There have been cases where banks have refunded more than 12 months but its not that common.

The Debt Free Wannabe section of this site has a lot of very helpful posters who can give guidance to those in debt that they are struggling with.