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Originally Posted by Pia
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If i was to reclaim all my bank charges, credit card and store card charges i would be a very happy bunny.
Now, i really will have to get my finger out and do this!
I've had another £30 charge from my bank for going overdrawn since i started reading this, and i rang up but was told i couldn't have it back- no suprises there.
I just left it though cos i felt i didn't know what i was talkling about enough to blag it...
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This is what was linked on the OP
Here's the background
Banks and card providers charge penalties if you breach your contract by defaulting, making a late payment, going overdrawn, returning a bounced cheque, or if a direct debit or standing order fails. The thing is, they're not allowed to do this.
What they can do is get you to cover the administrative costs that arise from it, but how much can it cost for a computer to print off a patronising automated letter, or to not process a direct debit? Not £25 to £40, but that's what they charge.
As many of you will have heard, the Office of Fair Trading has decided that banks and credit card companies should charge no more than £12 for such breaches of contract. However, the only reason they set this figure was: "In order to swiftly reduce charges and avoid heavy-handed regulation." In other words, the charge is still too high, but they just quickly set a limit to help all consumers immediately. If they procrastinated over regulation instead, we'd take longer to see the benefits. Also, it'd cost businesses money to implement new regulations, and those costs would filter down to us.
Since the OFT report, many people have already successfully recovered all of the charges plus interest that occurred in the past six years. (Six years is as far back as you can go in the courts.) You can do this too, whether you're claiming against your bank's charges or your card provider's. Here's how I'm going to do it:
1. Check how much they owe you
Firstly, work out what you're owed. I got this information by looking at my statements online, but you might use paper statements. If you don't have all of them, write to your provider quoting your account number and asking:
Please send me a comprehensive list of all the charges that you have made to my account in the past six years, showing the date and amount of each charge, and a description of what it was for. I make this request using my rights under the Data Protection Act and expect your response within 40 days.
You may want to call them a few days later to ensure they've received the letter. Make a note of the name of the person you speak to, as well as the time and date.
2. Ask for your money back
When you have details of the charges, you need to write to them again to request that they pay you back. My lawyer (OK, she's my mother, but she's a darn good solicitor too!) advised me that when you write to banks it carries a lot more weight if you show them in no uncertain terms that you know what the law is and where your authority for making a claim comes from. To that end, I'm going to use this letter, adapted from the successful one used by the Consumer Action Group:
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Dear Sir/Madam
Account no: (your account number)
Over the past six years, you have charged me for (enter what they have charged you for, e.g. exceeding your credit limit). It has come to my attention that this is unlawful at common law, and under statute and recent consumer regulations.
In the terms of the contract which you agreed to at the time that I opened my account, it is implied that you will conduct yourselves in a manner which complies with UK law.
I require full repayment of these charges, which I calculate at £xxxx plus interest of £xxxx. The total is xxxx. I also ask you to remove any default notices on my credit record that are related to these charges. A correction or amendment to the entries are not acceptable.
If you do not comply fully within 14 days, I shall begin a claim against you for the full amount, plus interest and costs, plus a claim under ss.7 and 13 of the Data Protection Act 1998 without further notice.
Furthermore, I shall submit to the OFT a complaint under the Consumer Credit Act 1974 upon the basis that you have failed to comply with their direction of 5 April 2006 and are therefore not 'fit and proper' to hold a consumer credit licence under the 1974 Act.
Yours faithfully
xxxx
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The reason why you ask for default notices to be removed is if you defaulted on a charge. It's not fair that your credit record looks bad because of an unfair charge. If you're sure this hasn't happened to you, you can of course remove all the text in italics. If you include the text in italics, make sure you de-italicise it first!
Again, I'd follow up this letter with a call a few days later.
3. The response
If my bank doesn't respond in two weeks I'm going to give them a call. They may offer a full refund, which would be fantastic. If they offer a partial refund, I'll tell them it's not acceptable and write another letter telling them so.
If the bank tells me that they'll get back to me later, I'll write to them saying that I'll allow them just 14 more days before I take them to court. (I'll attach a court form too, see point 4.)
If the bank tells me the charges are not unlawful, I'll ignore their bluff and stick to my guns. So far, the banks have paid out in full before going to court in almost every single case, so clearly they know they're wrong.
4. Wave court action in their faces
If they still haven't settled, I'll download a county court claim form called an 'N1' from the internet. I'll write the history of what happened on the form and quote the relevant law. Then, rather than issuing the form, I'll send it to my bank. With it I'll enclose a letter saying that I shall issue court proceedings in 14 days if they don't agree to settle in full. I'll also enclose bank statements as supporting evidence.
You can get the claim form and related guidance here.
5. Take court action
If they don't pay, I'll then issue court proceedings. This sounds scary, but it probably won't even get as far as court anyway. My experience of small claims (claims of less than £5,000) is that big businesses that are in the wrong will often let it get right to the point where court proceedings are imminent, then they'll pay up. You don't need a solicitor at the hearing if the claim is less than £5,000, as it's all rather informal. It'll cost around £130, which I can add to my claim. If I lose (and I'd be very surprised if I did), I won't have to pay the banks costs unless they can show that I've acted unreasonably. Which I won't.
If my claim was for more than £5,000, I'd get a solicitor before proceeding. Good ol' mum!
> For more guidance on claiming, see HM Courts Service and Consumer Action Group.
> Read the follow up articles on claiming more charges, calculating interest owed and sticking to your guns.
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