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Cartel identifies 'loophole' to reclaim bank fees
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British banks could be seriously set back on the road to stability if a new legal loophole enables customers to start claiming back charges again.
Consumer credit mis-selling specialist advisers Cartel Client Review has successfully got round the hiatus on banks repaying large charges for things like overdrafts, while the Office of Fair Trading investigates the practice.
It has seen 14 of its 60 clients seeking redress from banks - to the the tune of £2500 each on average - repaid, with approximately 30 more in the final stage of the reclamation process.
Carl Wright, managing director of Cartel Client Review, said the company and its solicitors has identified part of existing legislation which gives customers fresh grounds to get their money back but would not comment further on details for "commercial confidentiality" reasons.
But he predicted if banks continued to appeal against future Office of Fair Trading decisions his strategy would eventually "get out" and could see banks forced into widespread and substantial payouts.
"The big banks might think the recent High Court ruling amounts to a justification of their previous sharp practices when it comes to overdraft charges but we are here to warn them that they are in for a nasty surprise," he said.
"We are now in a unique position to bypass the clogged arteries of the county court system and help return the cash seized by banks levying excessive overdraft fees to the pockets of their customers, who are its rightful owners.
"This is all the more welcome at a time when the uncertainty about the economy, accompanied by the soaring cost of living, is putting household budgets across the UK under intense pressure."
Andrew Fisher, chief executive of Bracknell-based IFAs Towry Law, warned the government's new controlling stake in several UK banks could see them intervene to prevent people getting their money back.
"I imagine Prime Minister Gordon Brown will intervene and change the rules so that the charges are now allowed from the banks," he added.
"Because at the moment banks cannot afford this, they do not have the capital. I suspect what will happen is first they will decide that no future claims can be made from this kind of thing and then look at past cases."
But he added he sympathised with institutions' desire to charge people who go overdrawn, which he described as "stealing from the bank".
Source:FTAdviser.com - Cartel identifies to reclaim bank fees
Would an enlightened member of Legal Beagles care to shed light on this?
Is it perhaps this? http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf
Annex 2
- Story by: James Redgrave
- Magazine: FinancialAdviser
- Published Thursday , October 23, 2008
Advertising
British banks could be seriously set back on the road to stability if a new legal loophole enables customers to start claiming back charges again.
Consumer credit mis-selling specialist advisers Cartel Client Review has successfully got round the hiatus on banks repaying large charges for things like overdrafts, while the Office of Fair Trading investigates the practice.
It has seen 14 of its 60 clients seeking redress from banks - to the the tune of £2500 each on average - repaid, with approximately 30 more in the final stage of the reclamation process.
Carl Wright, managing director of Cartel Client Review, said the company and its solicitors has identified part of existing legislation which gives customers fresh grounds to get their money back but would not comment further on details for "commercial confidentiality" reasons.
But he predicted if banks continued to appeal against future Office of Fair Trading decisions his strategy would eventually "get out" and could see banks forced into widespread and substantial payouts.
"The big banks might think the recent High Court ruling amounts to a justification of their previous sharp practices when it comes to overdraft charges but we are here to warn them that they are in for a nasty surprise," he said.
"We are now in a unique position to bypass the clogged arteries of the county court system and help return the cash seized by banks levying excessive overdraft fees to the pockets of their customers, who are its rightful owners.
"This is all the more welcome at a time when the uncertainty about the economy, accompanied by the soaring cost of living, is putting household budgets across the UK under intense pressure."
Andrew Fisher, chief executive of Bracknell-based IFAs Towry Law, warned the government's new controlling stake in several UK banks could see them intervene to prevent people getting their money back.
"I imagine Prime Minister Gordon Brown will intervene and change the rules so that the charges are now allowed from the banks," he added.
"Because at the moment banks cannot afford this, they do not have the capital. I suspect what will happen is first they will decide that no future claims can be made from this kind of thing and then look at past cases."
But he added he sympathised with institutions' desire to charge people who go overdrawn, which he described as "stealing from the bank".
Source:FTAdviser.com - Cartel identifies to reclaim bank fees
Would an enlightened member of Legal Beagles care to shed light on this?
Is it perhaps this? http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf
Annex 2
