can i claim?

edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
11 replies 1.8K views
jamie2011jamie2011 Forumite
8 Posts
hi all, basically i just need to know if i have a chance.
iv just finished of paying £1,136 to llyods for going £40 overdrawn(it was un authourised) just over 3 years ago.

The trouble is i was offered a payment plan when the charges got to £250 but through lack of work etc i failed to meet the plan and i was defaulted. The reason the charges grew was because I was banking now from barclays.
The worst thing about this was obviously my account was passed to a debt collection agency and we started negotiations on how to pay it back, so i then went to see the bank manager of llyods to see if he could justify me being charged nearly £1100 for the sake of the £40 i spent, he just turned to me and said that he sold my debt to a debt collection agency.......which turned out to be a lie!! Lyods still owned my account if you like.

do i have any chance of claiming any of this money back or if not getting the default removed??
i look forward to your help....jamie
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  • dunstonhdunstonh Forumite
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    .......which turned out to be a lie!!

    Its not a lie. I used to work for Lloyds and once the debt was passed to the bad debts team then the branch lost the ability to negotiate terms.
    do i have any chance of claiming any of this money back or if not getting the default removed??

    What grounds would you give them for asking Lloyds to do this?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for your comment......I am asking the advise amfraid to say. Is it worth me writing to odbudsman?
    i can except i was in the wrong, just cant really get my head around paying £1096 in charges for £40.
    Anyway debt is gone and i would never bank with them again!
  • dunstonhdunstonh Forumite
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    Is it worth me writing to odbudsman?

    Since the court case was won by the banks, the ombudsman will not look at "unfair" complaint letters any more on bank charges. Just incorrect application and current financial hardship cases.

    So, if you wish the FOS to look at the complaint then you need a solid reason. The fact you feel that they were unfair is not enough now.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I would file a claim against the bank pronto. How can they justify charging you £1136 for going £40 overdrawn is criminal. In English common law which we are all governed by, it is illegal to impose a fine unless it is done in court. In other words the bank has no authority to charge you this money. They can only charge you what it actually costs them. This is the crux of any claim against a bank, they have acted unlawfully by heaping charges on charges. Write to the bank asking for your money back. They will write a reply that politely says get stuffed and then you write back and threaten the Ombudsman and the small claims court. ( All this can be done from this website while you sit at your computer ). They will not go to court because they know their charges are unlawful. I would still continue to file claims with the Ombudsman and ignore their protests that they don't deal with bank charges anymore. Ask them why not, it is what they are there for? The banks have relied on our inertia to not do anything and not make a fuss. Make a bloody big fuss, you have been robbed!!
  • nohnoh Forumite
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    setra505 wrote: »
    I would file a claim against the bank pronto. How can they justify charging you £1136 for going £40 overdrawn is criminal. In English common law which we are all governed by, it is illegal to impose a fine unless it is done in court....................

    As it has been established in court that these are not "fines" or penalties but charges for a service your arguement has no merit.
  • Oh yes it has! We are all governed by Common Law in this country and under this we can only be ' fined ' in a court. It dosen't matter how you dress it up, bank charges are unlawful. The courts ran scared when this was presented to them because if they acknowledged that bank charges are unlawful, it would open the flood gates to compensation claims that would bankrupt banks.( Not that banks have money - they don't, only debt. ) What the courts did was nothing more than a fudge. No bank will stand up in court to defend these charges because they can't. Another reason bank charges are unlawful is because under Law of Tort, contracts have to be signed by 2 people. Not just one ( customer ) and the signatures have to be ' wet '. I.E. Signed by both parties in agreement.
    I will always and do challenge my bank charges and I have not lost a claim yet!
  • edited 4 December 2011 at 1:49PM
    dunstonhdunstonh Forumite
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    edited 4 December 2011 at 1:49PM
    How can they justify charging you £1136 for going £40 overdrawn is criminal.

    Except it is not and they dont have to justify it.
    In English common law which we are all governed by, it is illegal to impose a fine unless it is done in court.

    Have you been out of the country for the last few years?
    In other words the bank has no authority to charge you this money.
    yes they do.
    They can only charge you what it actually costs them.

    no they dont.
    They will write a reply that politely says get stuffed and then you write back and threaten the Ombudsman and the small claims court. ( All this can be done from this website while you sit at your computer ). They will not go to court because they know their charges are unlawful.

    Since the banks won the court case everything you had said in your post is wrong. Only one case has known to won in court since the high court case (and that was due to very strange circumstances that are not likely to be repeated). I would also refer you to the FOS website where they say they no longer look at bank charge template letters on unfairness.
    I would still continue to file claims with the Ombudsman and ignore their protests that they don't deal with bank charges anymore. Ask them why not, it is what they are there for?

    No. It is not what they are there for. They are there to follow the law and make sure rules and laws are not being breached.

    You are giving the advice that was valid 5 years ago before the banks won the court case. Not now.

    edit added:
    Another reason bank charges are unlawful is because under Law of Tort, contracts have to be signed by 2 people. Not just one ( customer ) and the signatures have to be ' wet '. I.E. Signed by both parties in agreement.

    No it doesnt. Good grief. Either you are a troll just posting rubbish to create trouble or you are deluded in thinking that reading something somewhere makes you an expert.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hi, thanks for your comments Serra505!
    Dunstonh, ate you basically saying I have should forget it!? I excepted these charges and that's why I paid them off even after getting a default, I just want to know best way to go about it if I did try and make the claim. I also except what your saying about they having the authority to charge, well it's cost me around £1100 so that sucks!! I feel like iv been robbed:(
  • dunstonhdunstonh Forumite
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    Hi, thanks for your comments Serra505!

    Why are you thanking the person giving the wrong information out?
    Dunstonh, ate you basically saying I have should forget it!?

    No. You should ask the bank if they will refund them. If you dont ask you dont get. However, none of the arguments given by Serra505 apply since the banks won the court case. You are totally reliant on the goodwill of the bank. If you can put a strong enough case to the bank about financial hardship and they agree with your following their investigation, then they will refund some of the charges. If you are not in hardship you can still ask them to look at it but success on that front is more limited.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I was thanking them maybe for their time.....right or wrong this ain't a competion for me just want to know where I stand.
    But thankyou so much dunstonh, I shall do as you have said it got to be worth a go.
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