Bank Charges OFT Test Case Discussion

methekidsandthecat

Hi All

Did anyone hear the item on Jeremy Vine at lunch time with Martin and a chap from the Banking industry?

I was amazed that he stated that they were 'fines' and that 'customers would have to be punished in other ways.....'

Have I missed a trick here? I thought only the Courts could 'punish' and produce 'fines' in the same manner as a court to punish someone.

Have they ever actually release how much it costs them to send letters and manage accounts that have gone over drawn?

Me

MissImpressed

A small fee for having a bank account is nothing compared to continual charges @ £39.00 each. This month alone (and it's only half way through) I've had two lots debited. That's been much the same each and every month since last year. I'm a mature student by the way trying to make ends meet the best way possible.

Even a £12.00 penalty charge is more bearable than £39!.

rogue_element

I have recently moved away from my previous bank (Halifax), because of the extortionate charges they placed on my account. Recently, a paypal payment sent to my old account caused it to go overdrawn. I was charged a whopping £28 and two lots of £30 for being overdrawn for "two month" - although it was just a couple of days over end of the month. I have written to them telling them I want all my accounts closed. They wrote back saying they can't offer a refund of the charges because my account was overdrawn......! I find this ludicrous... I wrote back to them asking to explain this further. I can afford the charges, but that really is not the point! How can they give such a stupid reason and expect me to believe and go along with it. I really am looking forward to their next letter!

I have now set up an authorised overdraft and I am quite happy to pay the interest on this for another couple of years in the hope I will eventually get the money back from the bank. Of course, they could just refund me and be done with it. Up to them!

My last letter read:

Dear Sir/Madam,

I am writing in reference to your recent letter about the bank charges you have imposed on my account. I am at a loss to understand your explanation as to why you would not refund the charges.

You realise that I incurred the charges because my account went overdrawn without authorisation. You state that you are not able to refund the charges because I did not have sufficient funds in my account to cover the transactions. I do not think this is an acceptable reason, as I obviously incurred the charges for exactly this reason. I would like to add that I have now set up and authorised overdraft as I am no longer using this account. This means that the charges are now sitting as a negative balance. This cannot be considered breaking the terms and conditions. I would therefore like to challenge your decision.

I would be prepared to accept a partial refund of the charges to close the matter and to finish business with your bank on favourable terms. You will be aware how long I have been banking with you and I was hoping to remain with you for many years to come.

Smasher

I dare say this will be moved into your own thread, but just a quick point.

If I read correctly, you seem to have given them the 'Kevin Berwick answer' in saying that "This cannot be considered breaking the terms and conditions." If you have not broken your T&Cs, they cannot be penalties and you have no legal argument.

Unless I've misunderstood?

techspec

Smasher wrote: »

I dare say this will be moved into your own thread, but just a quick point.

If I read correctly, you seem to have given them the 'Kevin Berwick answer' in saying that "This cannot be considered breaking the terms and conditions." If you have not broken your T&Cs, they cannot be penalties and you have no legal argument.

Unless I've misunderstood?

Exactly. If you have not broke the terms and conditions, it is not a penalty charge, and you have therefore been charged a service charge, which cannot be challenged.

Our arguement is that we HAVE broken the terms and conditions, and therefore breached our contract, which brings in the relevant regulations to support us.

gaz6078

Hi can anyone explain to me , why it is that my bank has acknowledged my claim and put it on hold until after the court case but have seen fit to deduct the £30 fee when I went over my limit again?, I THOUGHT ALL CHARGES WERE SUSPENDED? DOES ANYONE HAVE AN ANSWER ?

GAZ6078

Smasher

No, they are free to continue looting your account. You are not entitiled to seek justice until they have finished playing wild goose chase with the OFT.

Cool huh?

[SIZE=-1] [/SIZE]

kingstongold

I want to make a claim against A&L- is it a good time to do it now and how is best to approach it?

Thanks

techspec

gaz6078 wrote: »

Hi can anyone explain to me , why it is that my bank has acknowledged my claim and put it on hold until after the court case but have seen fit to deduct the £30 fee when I went over my limit again?, I THOUGHT ALL CHARGES WERE SUSPENDED? DOES ANYONE HAVE AN ANSWER ?

GAZ6078

Banks were given permission to carry on charging in the FSA stitch up.

yralih

:rolleyes: I made my claim just before the OFT announced that there was to be a test case.
I then recieved a letter from Lloyds saying that because there was to be a test case my claim would be on hold until it is heard.
Now Lloyds have sold my 'debt' (the interest charges) to a debt collections company and my so called debt has more than doubled.
I live on benefits, and couldn't afford to pay in the first place, any idea as to what I can do now?
:eek: