Reclaiming bank charges - but what if they were 'paid off' with an bad rate loan

LindsayStapleton

Hi there

I'm wondering if anyone can help me.

I am doing ok now with my money, however the latest bank charges of £58 for going £2.06 over my overdraft for 2 days before correcting the situation has annoyed me.

I have printed off a letter asking for the last 6 years' worth of bank charges that have been applied to my account, because a few years ago, back in 2004, my life was very different.

A little background - I was living on my own in the expensive metropolis of London, I had 3 jobs, my rent was the cheapest I could get (and the place was awful) and I was struggling to pay for everything. The charges snowballed, as they do, and my reasonable salary one month didn't even cover the unauthorised overdraft (due to charges), let alone pay my bills. The bank 'very generously' offered me a £2,000 loan over 60 months with an unfavourable interest rate of 25%, which means that I am paying back £3,355.80 in total.

So, we have £2,000 of charges for that small period of time alone, and an extra £1,355.80 in interest added to 'help' pay those charges.

Where do I stand? Can I ask them for this interest back as well?

Considering we now have over £40,000 savings with this bank, do you think this will add towards my cause? I am setting up another account just in case I have to close my current one.

Thanks for your advices.

With best wishes

Lindsay

Natalieee_2

Hiya

You Cant Claim Back The Interest They Charged You .. However You Can Add 8% Statutory Interest Onto Your Claim

BUT They Are Not Obliged To Pay You This UNLESS Your File Your Claim With MCOL And Win, That Means They Will Have To Pay You Claim Plus Interest Plus Court Costs..

The Fact You Have Savings With Them - Not Sure About That, I Personally Dont Think They Will Treat Your Claim Differently Because Of It!!

Hope that helps xx

Natalieee_2

Oh hang on, you cant claim back the loan amount, only the charges applied!

Once you get your statementts you will have to add up every single charge, you cant just assume £2000 because thats the loan they gave you

Just wanted to clarify that x

LindsayStapleton

It was just £2,000 at that time. I didn't have any other reason for the loan, and I think there will be a lot more money in charges over the 6 years.

So there will be nothing I can do about the only fact that I have this expensive loan is because of their charges? Unfairly high?

Thanks for your help.

Lindsay x

Natalieee_2

LindsayStapleton wrote: »

It was just £2,000 at that time. I didn't have any other reason for the loan, and I think there will be a lot more money in charges over the 6 years.

So there will be nothing I can do about the only fact that I have this expensive loan is because of their charges? Unfairly high?

Thanks for your help.

Lindsay x

They gave you the loan because you were badly overdrawn due to charges, am i right?

So what you need to do is request your statement for the last 6 years, go through them and add up every single charge (if that £2000 was ONLY for charges then you will find your claim will be over £2000 - maybe even enough to pay off your loan!!) ..

Set your charges out in a spreadsheet, add your interest ontop if you want (using the interest calulator on the step-by-step guide) and send the 1st letter..

Theres nothing you can do about the fact they basically pushed you into a corner and made you take a very high interest loan because they hammerd you with charges BUT you can definatley re-claim all the charges from them AND if you win via the courts you can get back 8% interest on everything they charged you!!

Good luck!! xx

LindsayStapleton

Thanks! That should help, and will easily pay the loan off (and buy hubby a new TV that he wants!!).

Really appreciate your help here.

Thanks

Lindsay x