Have you ever been the victim of excessive banking charges?
Have your Service Users ever been the victim of excessive banking charges?
Do you ever wonder why banks impose heavy penalties on people who are already struggling to manage their money?
Do you ever wonder how banks are able to have privileged access to the credit register?
Did you realise that bank charges are actually unlawful and can be reclaimed?
Bank charges are not legally enforceable if they are penalties. Penalty clauses in contracts in English (and Scottish) law for breach of contract are not legal if the penalty exceeds the actual cost of the breach of either party. Nobody believes that it costs a bank £25 to £39 to return a DD, SO or cheque. It is purely a money making scheme, and a lucrative one at that - last year Which! estimated that the top 4 UK high street banks made £3 Billion from these charges alone. One in five bank customers incur these types of charge, and because its a bank imposing them, most assume that the bank must be legally entitled to do so.
Taking action - the BANK ACTION GROUP.
The Bank Action Group is part of the Consumer Action Group. It was setup in 2004 as an information resource to help people litigate against their banks for the return of unlawful charges. It is a free website, concerning itself with the empowerment of people to Reclaim their Rights.
http://www.consumeractiongroup.co.uk/bag.phpThe following web address contains a useful first point of call FAQ for those new to this. You will need to register with the site before you can view the document on the forums. Registering takes about 30 seconds:
http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/243-step-step-instructions.htmlThe site states that:
"We have now had over 1,300 people reclaim their charges from their bank - some by just asking, some by sending threatening letters and some by starting legal action. ALL got their money back before a court hearing has been heard. It is our opinion that the banks do NOT want to go to court. In all of the letters received from banks giving the money back, they claim that it is for 'financial' reasons - i.e. the cost of defending a claim would outweigh that of just paying up.In the case of one of our forum users, the bank paid 600% of what was being claimed in order to avoid court action. The bank in question has repaid over £68,000 so far. Surely if they were legally entitled to this money, they would have defended an action by now to prove the point and stop the 'snowball' effect? How many more cases do they have to pay back before it becomes financially viable? I think we all know the real answer"