Bank charge claimants can get help from Financial Ombudsman Service
June 30, 2007
Thousands of bank customers in the UK have been contacting their banks in order to reclaim bank charges that have been applied for exceeding the overdraft limit on the account, as well as for returned direct debits and cheques.
These charges were labelled as unfair and unreasonable by financial regulators in the UK last year, and consumers were urged to contact their banks in order to try and reclaim such charges, with claims that could go back up to six years. Many bank customers have already claimed back their charges, which for some have run into thousands, and many other still have claims pending.
Banks have been reluctant to make payment on these claims, and in many cases customers have been faced with retaliation from their bank, such as threats of account closure. However, consumers that have failed to get their charged repaid have been filing small claims in court, and in all but one case the banks have paid up in the end.
Lloyds TSB recently won a case in Birmingham, where the judge ruled in the bank’s favour rather than the plaintiffs. There were concerns that this case could see many other claims being turned down, and some people have been afraid to make a claim for their charges through fear of retaliation.
However, financial experts are now advising those looking to claim back charges who are not comfortable about filing a claim if the bank does not pay up to go through the Financial Ombudsman Service. This service does not cost anything, and any consumers that are not in agreement with the decision of the Financial Ombudsman Service can then consider taking court action.
However, because the judge’s decision is final in court, those that disagree with the judge cannot then go to the Financial Ombudsman Service.
Alan Wright
30th June 2007
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