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What is the next step for those with 'unfair' bank charges?
03/06/2008
On May 22, the seven financial institutions involved in the Office of Fair Trading 'unfair' bank charges case launched an appeal against the High Court decision that these bank charges should be subject to fairness rules.
As a result, many consumers are confused as to whether they must wait for this appeal to be resolved or whether they can start reclaiming these bank charges immediately.
The appeal is likely to be heard by July, although further appeals may be presented to the House of Lords and Europe after this. However, although this could prolong the final decision, it does not necessarily mean consumers have to wait until the end of the line before taking action.
There will be another OFT hearing from July 7-9 to determine whether the relevant terms in the banks' personal current account contracts can be assessed for fairness under the UTCCRs (Unfair Terms in Consumer Contracts Regulations) and whether they can be classed as 'penalties'.
In the meantime, customers looking to reclaim bank charges can kick-start their claims, despite a claims freeze imposed by the Financial Services Authority last July. And, because hundreds of thousands of people will be attempting to get the fees back, the earlier claims are submitted, the sooner they are likely to be sorted out.
Customers can claim charges as far back as six years (five years in Scotland) so it is advisable to look over bank statements for this whole period. For those whose fees were mainly incurred towards the beginning of this period, it may be worth writing to the bank concerned immediately, or contacting a company that will do so on their behalf.
According to MoneySavingExpert, submitting an immediate claim to the small claims court may also be worthwhile for these customers. "The FSA has said that on the date it announced the waiver, 27 July 07, it 'stopped the clock', so the time out issue won't arise, yet it does not have power over the courts, so for safety it's best to assume the clock's still ticking," says founder, Martin Lewis. It is worth noting that the consumer may end up losing their court fee, however.
Many companies have been set up to help consumers get a bank charges refund, and using their expertise could make the process easier for consumers than trying to make a claim off their own backs. Thousands of people have already received refunds for fees charged, so this should act as an encouragement to customers who have not yet submitted a claim.
What is the next step for those with 'unfair' bank charges?
03/06/2008
On May 22, the seven financial institutions involved in the Office of Fair Trading 'unfair' bank charges case launched an appeal against the High Court decision that these bank charges should be subject to fairness rules. As a result, many consumers are confused as to whether they must wait for this appeal to be resolved or whether they can start reclaiming these bank charges immediately.
The appeal is likely to be heard by July, although further appeals may be presented to the House of Lords and Europe after this. However, although this could prolong the final decision, it does not necessarily mean consumers have to wait until the end of the line before taking action.
There will be another OFT hearing from July 7-9 to determine whether the relevant terms in the banks' personal current account contracts can be assessed for fairness under the UTCCRs (Unfair Terms in Consumer Contracts Regulations) and whether they can be classed as 'penalties'.
In the meantime, customers looking to reclaim bank charges can kick-start their claims, despite a claims freeze imposed by the Financial Services Authority last July. And, because hundreds of thousands of people will be attempting to get the fees back, the earlier claims are submitted, the sooner they are likely to be sorted out.
Customers can claim charges as far back as six years (five years in Scotland) so it is advisable to look over bank statements for this whole period. For those whose fees were mainly incurred towards the beginning of this period, it may be worth writing to the bank concerned immediately, or contacting a company that will do so on their behalf.
According to MoneySavingExpert, submitting an immediate claim to the small claims court may also be worthwhile for these customers. "The FSA has said that on the date it announced the waiver, 27 July 07, it 'stopped the clock', so the time out issue won't arise, yet it does not have power over the courts, so for safety it's best to assume the clock's still ticking," says founder, Martin Lewis. It is worth noting that the consumer may end up losing their court fee, however.
Many companies have been set up to help consumers get a bank charges refund, and using their expertise could make the process easier for consumers than trying to make a claim off their own backs. Thousands of people have already received refunds for fees charged, so this should act as an encouragement to customers who have not yet submitted a claim.
