Tweet
Current account charges
Hi, thanks for your help Amethyst,
I have applied for a court hearing via moneyclaim to reclaim unfair unauthorised overdraft charges from Barclays. From what I have read so far, on various forums and consumer websites, there is a chance of reclaiming under various points of Law that were not covered, or no was judgement made, in the Nov 2009 OFT test case.
I have been turned down by the FOS on hardship grounds as Barclays didn't know I was hard up. In fact I was on Jobseekers allowance for seven months, the only income coming into our joint account. They actually absorbed one fortnightly payment into our overdraft on one occasion leaving me and my family (3 kids) with nothing. They did however give the money back the following day as I think they are not allowed to do that, or its not Barclays policy to absorb benefits.
Anyway, to get back to my claim, I have pasted my particulars of claim below (excluding the long list of charges 2005-2008). Any helpful feedback would be most welcome!
Expecting Barclays to request a ‘strike out’, I now have a response ready after reading the ‘Hull 20’ case from 2007. The other move I am bracing myself for is a move to a higher court (out of small claims).
PARTICULARS OF CLAIM
MY REASONS FOR CLAIMING
Account number: xxxx and account number: xxxx
I am claiming against Barclays Bank as I believe that they should repay all the charges in relation to direct debits, unauthorised overdrafts and standing orders that have been applied to my account in the past six years.
I have worked very hard to earn a living as a self-employed skilled worker and find it heinous that Barclays Bank has levied unfair and disproportionately high charges against the two Bank Accounts I hold with them.
The relationship between me and Barclays Bank is unfair because Barclays have taken advantage of my personal circumstances by applying bank charges to my accounts that are tailored to create profit for them and to the detriment of any social responsibility and accountability to customers such as myself. By debiting anything from £30 up to £265 in one single month from my account on an ongoing basis has put considerable strain on my ability to manage my finances and provide for my wife and three children as the sole income provider (2005- 2008).
Furthermore, Barclays Bank was in the unique and privileged position of having direct access and control of my funds. Unlike most other services, were I could withhold payment or at least argue my case, before parting with my money for a poor or overpriced service, the charges/penalties levied upon me by Barclays Bank occurred without consideration to my personal spending priorities such as purchasing groceries, paying a utility bill or paying a creditor.
I do not believe it to be fair that I should be financially penalised by Barclays Bank and their clearly disproportionate charges that have been conceived to ensnare customers like myself who struggle to manage their finances.
It is the overall size of the charges applied, repeatedly over time and the circumstances and manor that they have been applied that is my grievance.
In brief, my claim is based upon my rights as a consumer:
-£10.00 per month from 03/01/2006 to 02/10/2006
-£11.50 per month from 01/11/2006 to 01/05/2008
CLAIM DETAILS
1. The Claimant holds two current accounts with Barclays Bank (“the Current Accounts”).
2. The Current Accounts are operated in accordance with the standard terms and conditions which Barclays Bank applies to current accounts held with it (“the Standard Terms”). The Standard Terms were not individually negotiated between the Claimant and the Barclays Bank.
3. During the periods particularised in paragraph 4 below, the Current Accounts were in unauthorised overdraft. The terms on which the said overdraft was granted and/or continued were contained in the Standard Terms. Accordingly, in respect of those periods during which the Current Accounts were overdrawn, the Standard Terms constituted a credit agreement between the Claimant and Barclays Bank pursuant to s.140C of the Consumer Credit Act 1974.
4. The periods during which the Current Accounts were overdrawn are:
(1) September 2005and April 2008.
5. Pursuant to the Standard Terms, Barclays Bank has levied the following charges on the Claimant in respect of the operation of the Current Accounts (“the Bank Charges”):
(1) £3,075.
6. The Standard Terms and/or the circumstances in which the Bank Charges were levied were such that the relationship between Barclays Bank (as creditor) and the Claimant (as debtor) arising out of the Standard Terms is and/or was unfair to the Claimant (as debtor) within s.140A(1) of the Consumer Credit Act 1974. In particular, and without prejudice to the burden of proof which rests on Barclays Bank to prove that the circumstances of its relationship with the Claimant are fair (pursuant to s.140B(9) of the Consumer Credit Act 1974), the relationship between the Claimant and Barclays Bank was unfair in the following respects:
(1) The charges provided for by the Standard Terms were (or had the potential to be) excessive in comparison with the level of borrowing which triggered the levying of the said charges.
(2) The charges provided for by the Standard Terms were (or had the potential to be) excessive and punitive in comparison with the costs to Barclays Bank caused by the conduct which triggered the Bank Charges.
(3) The charges provided for by the Standard Terms were set by reference to the overall cost to Barclays Bank of providing current accounts to all of its customers which held such an account, rather than merely to the cost of the conduct by the Claimant which triggered the charges thereby effectively requiring the Claimant to subsidise the provision of current accounts by Barclays Bank to other customers.
(4) In the premises Barclays Bank did not deal fairly as between the Claimant and its other customers.
(5) The existence and quantum of the charges provided for by the Standard Terms and/or the circumstances in which those charges were levied were inadequately and/or insufficiently explained and/or drawn to the attention of the Claimant either:
(a) When the Current Accounts were first opened; and/or
(b) When the Claimant gave an instruction to Barclays Bank which would result in the levying of a charge; and/or
(c) Otherwise before any particular charge was applied.
(6) The circumstances and manner in which the charges were levied created potential for:
(a) The application of multiple charges; and/or
(b) The levying of charges to give rise to the application of further charges.
(7) The complexity of the charges provided for by the Standard Terms and/or the circumstances in which they were levied.
(8) The nature of the charges and/or the circumstances of their application was such as to cause inherent difficulties in predicting the incidence and amount of such charges in advance.
(9) The absence of any effective competition between providers of current accounts which restricted the ability of the Claimant to chose a current account operated on terms which did not provide for charges such as (and/or equivalent to) those levied by Barclays Bank pursuant to the Standard Terms.
7. Further or alternatively, by reason of each of the facts and matters set out above (save for those matters which relate to the level of the Bank Charges as against the service supplied in exchange), the contractual terms pursuant to which Barclays Bank levied the Bank Charges were unfair pursuant to article 5(1) of the Unfair Terms in Consumer Contracts Regulations 1999 because, contrary to the requirement of good faith, they caused a significant imbalance in the parties’ rights and obligations arising under the Standard Terms, to the detriment of the Claimant.
8. If considered as a fee for a service, the charges levied upon the claimant are disproportionately high and must be reasonable under Section 15 of the Supply of Goods and Services Act 1982.
9. By reason of the matters aforesaid, the Claimant is entitled to and claims hereby:
(1) Repayment of all sums paid by the Claimant by way of the Bank Charges as particularised above.
(2) Alternatively, the repayment of such part of the Bank Charges as the Court thinks fit in all the circumstances.
(3) An order that the Defendant shall cease to levy the Bank Charges on the Claimant pursuant to the Standard Terms.
(4) A declaration that those terms within the Standard Terms pursuant to which the Barclays Bank levied the Bank Charges are unenforceable by Barclays Bank.
10. Further, the Claimant claims interest pursuant to section 69 of the County Courts Act 1984 on the amount found to be due to him at 8% or such a rate and for such period as the Court thinks fit.
AND the Claimant claims:
(1) Alternatively such sum as the Court thinks fit by way of repayment of all sums paid by the Claimant by way of the Bank Charges
(2) An order that the Barclays Bank shall cease to levy the Bank Charges on the Claimant pursuant to the Standard Terms
(3) A declaration that those terms within the Standard Terms pursuant to which Barclays Bank levied the Bank Charges are unenforceable by Barclays Bank
(4) Interest pursuant to section 69 of the County Courts Act 1984
(5) Further or other relief
(6) Costs
LIST OF BARCLAYS BANK CHARGES
(EXCLUDING ACCOUNT FEES AND OVERDRAFT INTREST CHARGES)
Long list of charges ....
I have applied for a court hearing via moneyclaim to reclaim unfair unauthorised overdraft charges from Barclays. From what I have read so far, on various forums and consumer websites, there is a chance of reclaiming under various points of Law that were not covered, or no was judgement made, in the Nov 2009 OFT test case.
I have been turned down by the FOS on hardship grounds as Barclays didn't know I was hard up. In fact I was on Jobseekers allowance for seven months, the only income coming into our joint account. They actually absorbed one fortnightly payment into our overdraft on one occasion leaving me and my family (3 kids) with nothing. They did however give the money back the following day as I think they are not allowed to do that, or its not Barclays policy to absorb benefits.
Anyway, to get back to my claim, I have pasted my particulars of claim below (excluding the long list of charges 2005-2008). Any helpful feedback would be most welcome!
Expecting Barclays to request a ‘strike out’, I now have a response ready after reading the ‘Hull 20’ case from 2007. The other move I am bracing myself for is a move to a higher court (out of small claims).
PARTICULARS OF CLAIM
MY REASONS FOR CLAIMING
Account number: xxxx and account number: xxxx
I am claiming against Barclays Bank as I believe that they should repay all the charges in relation to direct debits, unauthorised overdrafts and standing orders that have been applied to my account in the past six years.
I have worked very hard to earn a living as a self-employed skilled worker and find it heinous that Barclays Bank has levied unfair and disproportionately high charges against the two Bank Accounts I hold with them.
The relationship between me and Barclays Bank is unfair because Barclays have taken advantage of my personal circumstances by applying bank charges to my accounts that are tailored to create profit for them and to the detriment of any social responsibility and accountability to customers such as myself. By debiting anything from £30 up to £265 in one single month from my account on an ongoing basis has put considerable strain on my ability to manage my finances and provide for my wife and three children as the sole income provider (2005- 2008).
Furthermore, Barclays Bank was in the unique and privileged position of having direct access and control of my funds. Unlike most other services, were I could withhold payment or at least argue my case, before parting with my money for a poor or overpriced service, the charges/penalties levied upon me by Barclays Bank occurred without consideration to my personal spending priorities such as purchasing groceries, paying a utility bill or paying a creditor.
I do not believe it to be fair that I should be financially penalised by Barclays Bank and their clearly disproportionate charges that have been conceived to ensnare customers like myself who struggle to manage their finances.
It is the overall size of the charges applied, repeatedly over time and the circumstances and manor that they have been applied that is my grievance.
In brief, my claim is based upon my rights as a consumer:
- It is not legal that Barclays Bank has charged me, and a proportionately small number of customers like me, excessively high charges to cross-subsidise free banking services for the rest of its customers who have remained in credit.
- It is not fair that the bank account market in the period 2005 – 2008 did not offer a readily available alternative bank account that had the option, for example, to opt-out of paying over limit charges in exchange for a ‘fair’ fixed monthly fee.
- It is not legal that the charges levied upon my accounts by Barclays Bank are disproportionately high when compared to the cost of providing my bank accounts to me. I have already paid interest on my overdraft facility and the following monthly ‘Account fees’
-£10.00 per month from 03/01/2006 to 02/10/2006
-£11.50 per month from 01/11/2006 to 01/05/2008
- By law, if the Barclays Banks charges that have been levied against me are liquidated damages they should reflect the actual costs incurred and not exceed the damages the bank suffered due to a breach of contract. If the Barclays Banks charges that have been levied against me are a fee for a service they must be reasonable under the Supply of Goods and Services Act 1982. I invite Barclays Bank to prove to me and the court the fairness of the charges that I am claiming for by way of a breakdown of their actual business costs for each charge as itemised in my list of Barclays Bank charges on the following pages.
- Barclays Bank has unlawfully taken money out of my Bank Accounts without my permission.
CLAIM DETAILS
1. The Claimant holds two current accounts with Barclays Bank (“the Current Accounts”).
2. The Current Accounts are operated in accordance with the standard terms and conditions which Barclays Bank applies to current accounts held with it (“the Standard Terms”). The Standard Terms were not individually negotiated between the Claimant and the Barclays Bank.
3. During the periods particularised in paragraph 4 below, the Current Accounts were in unauthorised overdraft. The terms on which the said overdraft was granted and/or continued were contained in the Standard Terms. Accordingly, in respect of those periods during which the Current Accounts were overdrawn, the Standard Terms constituted a credit agreement between the Claimant and Barclays Bank pursuant to s.140C of the Consumer Credit Act 1974.
4. The periods during which the Current Accounts were overdrawn are:
(1) September 2005and April 2008.
5. Pursuant to the Standard Terms, Barclays Bank has levied the following charges on the Claimant in respect of the operation of the Current Accounts (“the Bank Charges”):
(1) £3,075.
6. The Standard Terms and/or the circumstances in which the Bank Charges were levied were such that the relationship between Barclays Bank (as creditor) and the Claimant (as debtor) arising out of the Standard Terms is and/or was unfair to the Claimant (as debtor) within s.140A(1) of the Consumer Credit Act 1974. In particular, and without prejudice to the burden of proof which rests on Barclays Bank to prove that the circumstances of its relationship with the Claimant are fair (pursuant to s.140B(9) of the Consumer Credit Act 1974), the relationship between the Claimant and Barclays Bank was unfair in the following respects:
(1) The charges provided for by the Standard Terms were (or had the potential to be) excessive in comparison with the level of borrowing which triggered the levying of the said charges.
(2) The charges provided for by the Standard Terms were (or had the potential to be) excessive and punitive in comparison with the costs to Barclays Bank caused by the conduct which triggered the Bank Charges.
(3) The charges provided for by the Standard Terms were set by reference to the overall cost to Barclays Bank of providing current accounts to all of its customers which held such an account, rather than merely to the cost of the conduct by the Claimant which triggered the charges thereby effectively requiring the Claimant to subsidise the provision of current accounts by Barclays Bank to other customers.
(4) In the premises Barclays Bank did not deal fairly as between the Claimant and its other customers.
(5) The existence and quantum of the charges provided for by the Standard Terms and/or the circumstances in which those charges were levied were inadequately and/or insufficiently explained and/or drawn to the attention of the Claimant either:
(a) When the Current Accounts were first opened; and/or
(b) When the Claimant gave an instruction to Barclays Bank which would result in the levying of a charge; and/or
(c) Otherwise before any particular charge was applied.
(6) The circumstances and manner in which the charges were levied created potential for:
(a) The application of multiple charges; and/or
(b) The levying of charges to give rise to the application of further charges.
(7) The complexity of the charges provided for by the Standard Terms and/or the circumstances in which they were levied.
(8) The nature of the charges and/or the circumstances of their application was such as to cause inherent difficulties in predicting the incidence and amount of such charges in advance.
(9) The absence of any effective competition between providers of current accounts which restricted the ability of the Claimant to chose a current account operated on terms which did not provide for charges such as (and/or equivalent to) those levied by Barclays Bank pursuant to the Standard Terms.
7. Further or alternatively, by reason of each of the facts and matters set out above (save for those matters which relate to the level of the Bank Charges as against the service supplied in exchange), the contractual terms pursuant to which Barclays Bank levied the Bank Charges were unfair pursuant to article 5(1) of the Unfair Terms in Consumer Contracts Regulations 1999 because, contrary to the requirement of good faith, they caused a significant imbalance in the parties’ rights and obligations arising under the Standard Terms, to the detriment of the Claimant.
8. If considered as a fee for a service, the charges levied upon the claimant are disproportionately high and must be reasonable under Section 15 of the Supply of Goods and Services Act 1982.
9. By reason of the matters aforesaid, the Claimant is entitled to and claims hereby:
(1) Repayment of all sums paid by the Claimant by way of the Bank Charges as particularised above.
(2) Alternatively, the repayment of such part of the Bank Charges as the Court thinks fit in all the circumstances.
(3) An order that the Defendant shall cease to levy the Bank Charges on the Claimant pursuant to the Standard Terms.
(4) A declaration that those terms within the Standard Terms pursuant to which the Barclays Bank levied the Bank Charges are unenforceable by Barclays Bank.
10. Further, the Claimant claims interest pursuant to section 69 of the County Courts Act 1984 on the amount found to be due to him at 8% or such a rate and for such period as the Court thinks fit.
AND the Claimant claims:
(1) Alternatively such sum as the Court thinks fit by way of repayment of all sums paid by the Claimant by way of the Bank Charges
(2) An order that the Barclays Bank shall cease to levy the Bank Charges on the Claimant pursuant to the Standard Terms
(3) A declaration that those terms within the Standard Terms pursuant to which Barclays Bank levied the Bank Charges are unenforceable by Barclays Bank
(4) Interest pursuant to section 69 of the County Courts Act 1984
(5) Further or other relief
(6) Costs
LIST OF BARCLAYS BANK CHARGES
(EXCLUDING ACCOUNT FEES AND OVERDRAFT INTREST CHARGES)
Long list of charges ....
Comment