The fight goes on for fairer bank charges

[Legal Beagles]

Almost a year after it began, the legal debate over the cost of overdrafts and bounced cheques has reached the Court of Appeal. Jon Robins reports

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[Amethyst]

Re: The fight goes on for fairer bank charges

• Money
• Bank charges

The fight goes on for fairer bank charges

Almost a year after it began, the legal debate over the cost of overdrafts and bounced cheques has reached the Court of Appeal. Jon Robins reports

• Jon Robins
• The Observer,
• Sunday November 2 2008
• Article history

Bank customers' epic legal battle to try to recover unfair charges for bouncing cheques and exceeding overdrafts has reached the Court of Appeal.
Earlier this year, the Office of Fair Trading (OFT) estimated that banks take £2.5bn from their customers in unauthorised charges every year. Cash explains the litigation so far and what it means to you.
What happened in court last week?

'This was the appeal as to whether the Unfair Terms in Consumer Contracts Regulations 1999 apply in the case of bank charges,' says Phil Jones, head of personal finance at consumer rights group Which?.
Seven banks and one building society, together with the OFT, agreed to a test case after hundreds of thousands of frustrated bank customers attempted to reclaim money. It was first heard in January, when the High Court considered whether the OFT had the power to decide if the banks' current terms and conditions relating to charges were 'fair' under the regulations. In April the judge found that it did, meaning the watchdog can assess what amounts to a fair charge for entering into an unauthorised overdraft. This, consequently, would enable customers to claim money back.
It is that decision the banks are now appealing. 'We are hopeful that the Court of Appeal will uphold January's judgment. If they don't, we'd expect to see the OFT appealing, which would see the case move on to the House of Lords,' says Jones. The appeal judges' ruling is expected in January.
Most consumer claims relate to older terms and conditions. What about them?

Separately, the High Court is expected to rule this month on whether historical terms and conditions are sufficiently similar to the present ones for the judgment to apply to all.
Anything else?

Yes, the High Court had also to establish whether unauthorised overdraft charges were 'penalties' under common law - that is, broadly speaking, charges that are arbitrary and penal rather than ones that broadly reflect the extra expense of going overdrawn. Earlier this month the court ruled they were not penalty charges. 'This means that, generally, consumers will have to rely on proving the terms are unfair if they are to get their money back,' explains Jones. This should not make claiming repayment any more difficult.
What about the credit crisis? Will the government's bail-out of the banks have an impact on charges?

'In terms of the fee structures for overdrafts, the issue is totally separate,' says Lesley McLeod of the British Bankers' Association. 'I do not think that our members see that there is any read-across.'
The judges should decide 'on the basis of the law rather than the economic situation', says Jones. 'Stability is important in the banking system and we recognise that is the primary concern. We do not think there is a contradiction between having stable banking and treating customers fairly.'
What if you have a new claim?

The FSA has a waiver in place that covers nearly all UK banks and building societies, which means no claims will be settled until the end of this legal action. In the meantime, if you have had an unauthorised overdraft charge made against you, write to your bank and ask for your money back. For more information, check the FSA consumer website at moneymadeclear.fsa.gov.uk.
Do I need to instruct someone to handle my claim?

There are plenty of firms promising to recover charges on a 'no win, no fee' basis, but which may take up to 30 per cent of your compensation if you win.
Two weeks ago a new company, Cartel Client Review, promised customers a free service. Carl Wright, its managing director, claims that his company will 'exploit other legal avenues' to enable customers to reclaim their cash and says they are 'in a unique position to bypass the clogged arteries of the County Court service and help return the cash seized by banks'. However, he refuses to expand any further for fear of giving up a commercial advantage. Which? is puzzled. 'We don't understand what the company is referring to,' says Jones. 'As far as we are aware there won't be any more payments unless and until the OFT wins its case and there are no more appeals.'
He adds: 'Our view is that you do not need to use a claims management company. It is free and easy to do it yourself.'
• Use our template letters to reclaim your unauthorised overdraft charges - visit guardian.co.uk/money/bankcharges for further information










grrrr CCR - basically they are saying IF you become a client of CCR (ie pay your £495 for dodgy agreements wiping) they'll tyr a claim under hardship rules.

Free Recovery of ‘illegal’ Bank Charges for Cartel Client Review Clients

If you become a client of Cartel Client Review from the 18th October 2008 onwards, you are, subject to terms and conditions, eligible for a no fee, no cost, bank charges reclaim service from Cartel Reverse Bank Charges.

• No up-front fee
• No contingency fee
• 100% of the charges refunded and any compensation and interest is yours

Why May I be Able to Recover my Bank Charges?

The Unfair Terms in Consumer Contract Regulations state that charges should not exceed the cost to the provider. Do you think that each charge made by your bank, charges of possibly £25 plus, is a fair representation of what it costs the bank?

While banks have tried to argue that the ‘Unfair Terms’ regulations do not apply to their bank charges, many commentators believe that this is not the case and the Office of Fair Trading (OFT) is currently running a test case against 8 major banks.

While this test case is in progress a ‘stay’ has been placed by the courts but it is highly recommended that you should submit your claim quickly.

• Why Submit Your Claim Now?
  There is a 6 year limit from the date of a claim being issued. Issue a claim now to ensure you can reclaim back as far as possible.
  Even with the ‘stay’ in place, Cartel Head Office staff are specialists at identifying circumstances that will allow you, where possible, to make your claim now. You may still get a ‘payout’ while everyone else is waiting!

[EXC]

Re: The fight goes on for fairer bank charges

''Cartel Client Review, promised customers a free service''

So it's ''free'', subject to a £495 charge? Yes, I get it!

[natweststaffmember]

Re: The fight goes on for fairer bank charges

Well, I guess I have a confession to make. I have been working undercover and have obtained these new documents which will explain how their dedicated team of workers are able to get refunds. Apologies I was unable to pass this onto site team but it is TOP SECRET and its needs to be released.

Document 1
http://www.ico.gov.uk/upload/documen...a_subjects.pdf

and Document 2
http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf

[Amethyst]

Re: The fight goes on for fairer bank charges

oooooo undercover elephant you are so clever

[natweststaffmember]

Re: The fight goes on for fairer bank charges

Elephant???? I think I had hoped I was a fly on the wall

[Tools]

Re: The fight goes on for fairer bank charges

I thought that was taken down in 1989?