Are you being unfairly charged by your bank?
Many UK consumers have found themselves facing hefty unauthorized borrowing charges for going over their specified overdraft limit, even if it is just by a couple of pounds, and this has results in a massive rise in consumers complaints in relation to bank charges. As a result of this, consumers are now being encouraged to look into reclaiming unfair charges but also to look at the longer term consequences. There is now plenty of advice available from consumer finance agencies for those looking to query or reclaim unfair charges.
Many consumer finance agencies such as the Bank Action Group have claimed that the charges enforced by banks are illegal, and the Financial Ombudsman has stated that very often consumers can reclaim charges simply by being persistent with the bank. In some cases the bank will offer to repay a percentage of the charges that have been applied to the consumer’s account, but in some cases – namely when threatened with court action – they may repay the full amount of the charges.
However, consumers are also urged to look at the longer term consequences, such as the bank refusing to do further business with the consumers and in some cases closing the account. Many experts advise consumers to ensure that if they do intend to take court action against the banks that they open a new account and transfer any loans or repay overdrafts in full just in case the bank does attempt to close the bank account.
Many banks charge between twenty and thirty five pounds for going over the limit or for unpaid direct debits and sending out letters. However, the banks should not be making charged that exceed any damages or costs incurred by the bank, which means that many of the charges being applied to consumer’s accounts are being classed as excessive, unnecessary, and in some cases illegal.
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