Consumers being charged by bank charge reclaim firms
September 19, 2008
According to a recent report consumers are being charged fees by a number of bank charge reclaim firms after telling the firms that they no longer need to chase the claim because of the fact that claims are still on hold due to the ongoing test case. Many people signed up to these claim firms originally, and were happy to do this because the firms charged on a no win no fee basis, which means that the consumer would not pay anything if the company did not claim their charges back.
However, with pending cases still on hold for the foreseeable future whilst the presiding judge reaches a decision many consumers have decided that there is little point these firms chasing the fees any longer. Many have been shocked to find that whilst the reclaim firms claimed to operate on a no win no fee basis they are now trying to charge consumers cancellation fees, which they have stated are to cover administrative costs.
Some companies are charging up to £35 to return the paperwork of consumers who want to cancel their claims, and one woman said that she paid £30 upfront and was told that this would be deducted from the money that the firm took after reclaiming her funds.
However, she has since said that she no longer wants to go ahead and is having no toy in getting back her £30. She said: ‘I realised I had made a mistake and I wanted to cancel the claim. I have rung them five times and sent three e-mails and left messages, but to no avail. They have not responded.’
One consumer group official said: ‘There has been absolutely no need to use one of these claims handlers and especially now there is a court case. If you think you are owed overdraft charges, complain now - the bank is under no obligation to resolve your case until the court case is over.’
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