Bank Charges and Debt

Nov. 21, 2006 – It is estimated that well over £4 million has now been successfully reclaimed in bank charges by consumers throughout the country. The penalty charges are being contested under the Unfair Terms in Consumer Contract Regulations as being to high, within these regulations it states that the company cannot make a profit from the customers breach of contract, however they are allowed to recover that actual costs in relation to the unauthorized overdraft or insufficient funds to cover a direct debit, but the banks are refusing to divulge this information, for fear of an onslaught.

There tactics at present include refusing to comply with Data Protection Act requests for previous years statements, drawing out the court process in some cases to within an hour of the hearing, throwing in every legal terminology possible at the consumers in the hope of scaring the claimant off or intimidating them into accepting partial offers of settlement. Natwest continually ask for further information under CPR part 18, when they are well aware that in the small claims track they cannot use this. Another bank has threatened to make a part 36 offer, which if refused can cost the claimant a great deal of money should they lose, but once again this threat was made on a claim within the small claims system where it is not valid. The banks are using every scare tactic they can think of to stop consumers who wish to reclaim bank charges.

This is purely own to the fact that they are still refusing to enter a court room and settling without liability, with the excuse that financially it would be cheaper to pay rather than go to the expense of a court case. That excuse might have washed a few months ago but the fact they have paid back so much now surely proves beyond a doubt that, they pay because they cannot win. has been helping people reclaim bank charges and overdraft charges Free for a while, but now its time for the consumers to hit back again with the new wave of claims against Early Redemption Penalties, and mis sold Payment Protection Insurance. The ERP’s are claimed in exactly the same way as with bank charges, however the mortgage or loan company are once again allowed to recover their actual costs in redeeming the mortgage or loan which are generally clearer than with bank charges. Many consumers have now successfully claimed back these charges. As well as successfully arguing that the PPI’s were indeed mis sold and receiving full refunds.

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