Tweet
Warning on bank charge cold callers | This is Money
Warning on bank charge cold callers
Jenny Little, Financial Mail
14 February 2010
When I received an unexpected phone call from a company called Customer Claims saying the firm could guarantee the repayment of my bank charges, I was immediately suspicious.
SUSPICIOUS: Journalist Jenny Little received a call from Customer Claims
WANT TO KNOW MORE?
As a financial journalist who has written about fraud I know to be wary of unsolicited calls. I was also aware that the Office of Fair Trading withdrew its legal battle with the banks over excessive fees in December, leaving most customers unable to reclaim outstanding money. Experts are now warning of an increase in cold calls from unauthorised claims management firms that falsely claim they can guarantee bank charge refunds for a fee.
In my case, Customer Claims, based in Manchester, said it could get repayment in four to 12 weeks for £49.99.
Phil Jones, spokesman for consumer group Which?, says: 'This is complete nonsense. No one can guarantee repayment of bank charges, and certainly not in a set period.'
The OFT took legal action against the banks in 2007, challenging the fairness of charges for unauthorised overdrafts. Initial victories in the High Court and the Court of Appeal allowed thousands of customers to reclaim charges, but a Supreme Court ruling in November overturned the earlier rulings.
The OFT admitted defeat and one million customers were left with outstanding claims for billions of pounds. At the time, Which? chief executive Peter Vicary-Smith said: 'We're concerned that the ruling could drive people into the arms of unscrupulous claims handlers. Beware of companies who contact you promising to get your bank charges back.'
Claims management firms must be authorised by the Ministry of Justice, whose rules forbid cold calling of individuals. The website claimsmanagementregulation.co.uk shows firms authorised by the regulator. Customer Claims is not among them.
A spokesman for the claims regulator said: 'Authorised businesses must not cold call in person or engage in any kind of high-pressure selling. We will investigate claims about unauthorised trading and take action if necessary.' The Government department closed down 100 firms late last year.
Customer Claims has one registered director, Stuart Hogarty, 27, from Blackley in Manchester. When contacted by Financial Mail, Hogarty maintained that Customer Claims was not a claims management firm but passed its business to an operation called Babuk Ltd, which is authorised by the claims management regulator.
Companies House shows that Hogarty is company secretary of Babuk, a fact he denied. It has been widely reported that Babuk has employed cold-calling techniques similar to those of Customer Claims, also giving guarantees that it can get bank charges repaid. Babuk also has an outstanding county court judgment for £6,500.
Other firms of which Hogarty has been a director - Banking Rights Bureau, Banking Advise Bureau and Severn Telecoms - also operated in the claims management and call-centre industries. All three have been dissolved.
While most customers stand little chance of getting bank charges refunded, there are some whose claims may succeed. The Financial Ombudsman Service will still intervene on behalf of those in a position of 'financial hardship'.
For more information, visit financial-ombudsman.org.uk or call 0300 123 9123.
Spinning a line: What to do
• Never give personal information. No legitimate firm would ask for bank account details, date of birth or a National Insurance number over the phone.
• If you receive a call from an unknown firm, ask for the company name, phone number, address and registration number. Note the number from the caller display. These details may help to confirm its credentials or point to a fraudulent firm.
• Never agree to a contract over the phone. An Office of Fair Trading spokesman says: 'If you are interested in an offer, find out who you are dealing with and how to get hold of them. Ask for a name, phone number, address and written confirmation.'
• To report a suspect call, contact the claims management helpline on 0333 200 0110.
• If you have divulged details to a suspect operation, contact the Government helpline Consumer Direct on 0845 404 0506. It may refer cases to Trading Standards, or redirect you to the claims management regulator or the police.
Warning on bank charge cold callers
Jenny Little, Financial Mail
14 February 2010
When I received an unexpected phone call from a company called Customer Claims saying the firm could guarantee the repayment of my bank charges, I was immediately suspicious.
SUSPICIOUS: Journalist Jenny Little received a call from Customer Claims WANT TO KNOW MORE?As a financial journalist who has written about fraud I know to be wary of unsolicited calls. I was also aware that the Office of Fair Trading withdrew its legal battle with the banks over excessive fees in December, leaving most customers unable to reclaim outstanding money. Experts are now warning of an increase in cold calls from unauthorised claims management firms that falsely claim they can guarantee bank charge refunds for a fee.
In my case, Customer Claims, based in Manchester, said it could get repayment in four to 12 weeks for £49.99.
Phil Jones, spokesman for consumer group Which?, says: 'This is complete nonsense. No one can guarantee repayment of bank charges, and certainly not in a set period.'
The OFT took legal action against the banks in 2007, challenging the fairness of charges for unauthorised overdrafts. Initial victories in the High Court and the Court of Appeal allowed thousands of customers to reclaim charges, but a Supreme Court ruling in November overturned the earlier rulings.
The OFT admitted defeat and one million customers were left with outstanding claims for billions of pounds. At the time, Which? chief executive Peter Vicary-Smith said: 'We're concerned that the ruling could drive people into the arms of unscrupulous claims handlers. Beware of companies who contact you promising to get your bank charges back.'
Claims management firms must be authorised by the Ministry of Justice, whose rules forbid cold calling of individuals. The website claimsmanagementregulation.co.uk shows firms authorised by the regulator. Customer Claims is not among them.
A spokesman for the claims regulator said: 'Authorised businesses must not cold call in person or engage in any kind of high-pressure selling. We will investigate claims about unauthorised trading and take action if necessary.' The Government department closed down 100 firms late last year.
Customer Claims has one registered director, Stuart Hogarty, 27, from Blackley in Manchester. When contacted by Financial Mail, Hogarty maintained that Customer Claims was not a claims management firm but passed its business to an operation called Babuk Ltd, which is authorised by the claims management regulator.
Companies House shows that Hogarty is company secretary of Babuk, a fact he denied. It has been widely reported that Babuk has employed cold-calling techniques similar to those of Customer Claims, also giving guarantees that it can get bank charges repaid. Babuk also has an outstanding county court judgment for £6,500.
Other firms of which Hogarty has been a director - Banking Rights Bureau, Banking Advise Bureau and Severn Telecoms - also operated in the claims management and call-centre industries. All three have been dissolved.
While most customers stand little chance of getting bank charges refunded, there are some whose claims may succeed. The Financial Ombudsman Service will still intervene on behalf of those in a position of 'financial hardship'.
For more information, visit financial-ombudsman.org.uk or call 0300 123 9123.
Spinning a line: What to do
• Never give personal information. No legitimate firm would ask for bank account details, date of birth or a National Insurance number over the phone.
• If you receive a call from an unknown firm, ask for the company name, phone number, address and registration number. Note the number from the caller display. These details may help to confirm its credentials or point to a fraudulent firm.
• Never agree to a contract over the phone. An Office of Fair Trading spokesman says: 'If you are interested in an offer, find out who you are dealing with and how to get hold of them. Ask for a name, phone number, address and written confirmation.'
• To report a suspect call, contact the claims management helpline on 0333 200 0110.
• If you have divulged details to a suspect operation, contact the Government helpline Consumer Direct on 0845 404 0506. It may refer cases to Trading Standards, or redirect you to the claims management regulator or the police.
