Financial Ombudsman Service can help consumers to reclaim bank charges
Thousands of people are still in the process of claiming back their bank charges after UK financial regulators deemed them as unfair last year. These charges relate to returned direct debits and cheques as well as to exceeding the overdraft limit on the account. Consumers in the UK have been told that they can claim back charges going back up to six years, which in some cases amounts to thousands of pounds. So far only one bank has won its case against a customer that has taken it to court, and this was Lloyds TSB.
Consumers are now being advised by experts to consider going through the Financial Ombudsman Service if they are not having any luck getting their charged returned from the bank. Previously consumers that have been refused a refund from the bank have filed a claim in the small claims court, and in the vast majority of cases, apart from one, the bank has paid up. However, consumers can now go directly to the Financial Ombudsman Service with regards to reclaiming their charges. Experts state that those that do not feel confident of going through court, and those that cannot afford to pay for filing a claim, the FOS could prove the ideal solution.
Anyone that takes their claim for bank charges directly to court cannot then go through the FOS, as the judge’s decision is the final one. However, those that go through the Financial Ombudsman Service can then go through the court if they do not agree with the decision that is made by the ombudsman. The service is a free one, which is ideal for those that cannot afford to pay charges. This is Money has recommended that anyone considering court action over bank charges goes through the Financial Ombudsman first, as it could save a lot of time, hassle, and even some money in the long run.
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