Future claims against banks in the UK could be reduced
Financial watchdogs are alerting consumers in the UK to another tactic that the major banks are using in a bid to try and get out of repaying the unlawful and unjustified charges that they have been applying to customers' accounts for many years. Since the financial regulators in the UK deemed charges that were applied for exceeding a credit limit or for returned cheques and credit cards as unlawful, many consumers have been staking claims to fees going back up to six years. For some customers this has amounted to a refund of thousands, and the banks aren't at all happy about it, although none has yet managed to justify why so much is charged when the actual cost incurred by the bank is simply the cost of a letter.
Some of the major banks have tried a number of tactics in order to stall or get out of making payments in these claims, such as failing to send out relevant documentation, threatening claimants with account closure, delaying the process of the claims, and more. And a new tactic has recently emerged that could have a big impact on the success of future claims. This is being done by banks including HSBC and Barclays, where the banks are changing the wording on the current accounts slightly so that these charges are classed as arrangements fees, which could make a difference to future claims.
One expert stated: 'This is an attempt by the banks to evade the current movement for refunds. But just changing the name of the charge isn't going to get them off the hook, if what they are doing is the same.' Another move that could affect the amount that future claimants can successfully receive is the forthcoming announcement by financial regulators in the UK in relation to how much can be deemed fair in terms of these charges. Whatever the amount, this is likely to be deducted from each fee that future claimants try and retrieve.
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