Reclaiming Bank Charges - Sole Trader

j2140b_2

Does anybody know if there is any point in attempting to reclaim bank charges from a sole trader business account.

We had a small retail business which we have had to close due to the pressure put on us by our bank - charges on top of charges, returned D/D charges, various admin fees - the list goes on.

Over an 18 month period we racked up about £6K in bank charges - some reasonable and expected, some not.

I have heard that banks are refunding less and less and that business accounts, even if a sole trader, are even less likely to have a successful claim.

Any advice or success stories much appreciated.

dunstonh

Does anybody know if there is any point in attempting to reclaim bank charges from a sole trader business account.

Depends on the reason.

We had a small retail business which we have had to close due to the pressure put on us by our bank - charges on top of charges, returned D/D charges, various admin fees - the list goes on.

I would have thought it more likely that you closed because of lack of retail trade rather than bank charges.

I have heard that banks are refunding less and less and that business accounts, even if a sole trader, are even less likely to have a successful claim.

Banks are refunding less full stop as they won the court case many years ago. Now they only deal with hardship cases. You were in business. So, you must appreciate the need to be profitable. If it isn't it fails. So, complaints about unfair charges will fail. Its an automatic rejection.

only if you are in financial hardship will they consider the possibility of a goodwill refund of some of these. What priority debts do you have (e.g. arrears on council tax, utilities, mortgage etc)? Does your bank statement show no luxury items going through (e.g. no pay TV or mobile phone or restaurants/takeaways)?

As a sole trader, you are treated more as an individual. So, your personal situation does come into play with the consideration of hardship. However, equally, a failed business is not the fault of the bank and they are entitled to be paid for the services they have given.