Tweet
Banks may face a further 8 million bank charges claims
23 November 2009
The UK’s banks could yet be flooded with another 8 million* bank charges claims, says Which?
New figures from the consumer champion show that, of around 12 million* people that have been hit with bank charges since July 2001, over three in five (63%) haven’t asked for their money back.
With the Supreme Court’s ruling on the test case due on 25 November, the banks could face a deluge of new complaints should the Office of Fair Trading (OFT) win. This is in addition to the estimated million plus claims that are currently on hold.
Around four in 10 claims (42%) waiting to be resolved are for amounts of £500 or more, with four in ten people waiting for a claim resolution (41%) saying that they would use any refunded money to pay off bills or debts and around two in 10 saying they would spend it on shopping (20%) or a holiday (18%).
Which? personal finance campaigner, Phil Jones, says:
“If the Supreme Court rules against them, the banks could find themselves staring down the barrel at millions of fresh claims. This is in addition to the huge backlog that’s already built up since the waiver was put in place.
“With so much money at stake, the banks may well try to drag the process out even longer, so we’d warn people not to make any plans for their refunded cash just yet.”
Which? has launched a new banking campaign – Britain Needs Better Banks – and anyone who has been treated shoddily by their bank can visit BNBB to share their experience or for information about how to make an official complaint.
Notes to Editor
*Which? questioned 4,161 UK adults aged 16+ in September 2009.
Nearly 3 in 10 (28%) current account holders (25% of all adults) have been hit with bank charges since July 2001.
The 12 million figure is a simple estimate that multiplies the number of adults aged 16+ in the UK (from ONS 2007 mid-population estimates) by the percentage from the survey: 49 million x 25%. A 95% confidence interval on this calculation gives a value between 11.8 million and 13.1 million, with a mid point of 12.4 million (rounded to 12 million).
63% of those who have been charged haven’t claimed the money back. This equates to 16% of all adults. The same calculation as above gives us a range of 7.3-8.4 million, with a mid point of 7.8 million (rounded to 8 million).
11% of those charged have a claim on hold, which equates to 3% of the adult population. The same calculation as above gives us a range of 1.1-1.6 million.
*In January 2008 the UK’s leading high street banks and OFT went to the High Court to decide whether the OFT was able to assess whether bank charges are fair or not.
The OFT won - both in the High Court and later in the Court of Appeal. For a media briefing on what happens next in the bank charges saga, contact Adam Williams on 0207 7707563 / adam.williams@which.co.uk
Which? is the leading independent consumer champion in the UK. We provide impartial, expert information on products and services in our magazines, books and online to help consumers make more informed choices, and we campaign on issues that matter to all consumers, from food to finances, health to estate agents. For more information on how we can help you, visit http://www.which.co.uk/campaigns
23 November 2009
The UK’s banks could yet be flooded with another 8 million* bank charges claims, says Which?
New figures from the consumer champion show that, of around 12 million* people that have been hit with bank charges since July 2001, over three in five (63%) haven’t asked for their money back.
With the Supreme Court’s ruling on the test case due on 25 November, the banks could face a deluge of new complaints should the Office of Fair Trading (OFT) win. This is in addition to the estimated million plus claims that are currently on hold.
Around four in 10 claims (42%) waiting to be resolved are for amounts of £500 or more, with four in ten people waiting for a claim resolution (41%) saying that they would use any refunded money to pay off bills or debts and around two in 10 saying they would spend it on shopping (20%) or a holiday (18%).
Which? personal finance campaigner, Phil Jones, says:
“If the Supreme Court rules against them, the banks could find themselves staring down the barrel at millions of fresh claims. This is in addition to the huge backlog that’s already built up since the waiver was put in place.
“With so much money at stake, the banks may well try to drag the process out even longer, so we’d warn people not to make any plans for their refunded cash just yet.”
Which? has launched a new banking campaign – Britain Needs Better Banks – and anyone who has been treated shoddily by their bank can visit BNBB to share their experience or for information about how to make an official complaint.
Notes to Editor
*Which? questioned 4,161 UK adults aged 16+ in September 2009.
Nearly 3 in 10 (28%) current account holders (25% of all adults) have been hit with bank charges since July 2001.
The 12 million figure is a simple estimate that multiplies the number of adults aged 16+ in the UK (from ONS 2007 mid-population estimates) by the percentage from the survey: 49 million x 25%. A 95% confidence interval on this calculation gives a value between 11.8 million and 13.1 million, with a mid point of 12.4 million (rounded to 12 million).
63% of those who have been charged haven’t claimed the money back. This equates to 16% of all adults. The same calculation as above gives us a range of 7.3-8.4 million, with a mid point of 7.8 million (rounded to 8 million).
11% of those charged have a claim on hold, which equates to 3% of the adult population. The same calculation as above gives us a range of 1.1-1.6 million.
*In January 2008 the UK’s leading high street banks and OFT went to the High Court to decide whether the OFT was able to assess whether bank charges are fair or not.
The OFT won - both in the High Court and later in the Court of Appeal. For a media briefing on what happens next in the bank charges saga, contact Adam Williams on 0207 7707563 / adam.williams@which.co.uk
Which? is the leading independent consumer champion in the UK. We provide impartial, expert information on products and services in our magazines, books and online to help consumers make more informed choices, and we campaign on issues that matter to all consumers, from food to finances, health to estate agents. For more information on how we can help you, visit http://www.which.co.uk/campaigns
Comment