Banking industry profits could fuel further claims

Over recent months many consumers in the UK have been attempting to reclaim banks charges that have been deemed as unfair and unlawful by the Office of Fair Trading and the Financial Services Authority. Banks in the UK have been charging consumers hefty fees of up to around thirty nine pounds per fee for going over their overdraft limit, even if the consumers has only exceeded the limit by a very tiny amount. However, the cost incurred by the banks is only a fraction of what they have been charging customers.

Consumer groups and industry experts have been urging consumers to request six years worth of statements and attempt to reclaim these unlawful fees, and many have reclaimed hundreds and even thousands of pounds back from banks that have charged them over and over again in the last six years. Obviously, banks have kicked up a big fuss over this matter, despite the fact that none have yet been able to justify the amount that consumers are charged compared to the cost that the bank incurs.

And now, with the top five banks in the UK reporting record profits of around forty billion pounds collectively, many think that there will be a further surge in the number of people claiming back their fees. The reports of record profits are likely to enrage many consumers, who have already become disillusioned by banks that have charged them a fortune in overdraft fees and then threaten to close their accounts if they try and reclaim the fees.

However, despite the fact that most banks have been paying up and have still managed to report record profits, it is likely that many banks will try and recoup the costs elsewhere, such as ending free banking and charging consumers for holding a current account with them.