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Victory for bank charge crusader
CASH FIGHT: Christopher Astley who is taking on the banks in a battle over ‘unfair’ charges
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Published Date:
05 March 2009
By Charles Graham
A Wigan entrepreneur who took on the banks over "unfair" charges and won says he is a big step closer to doing the same for hundreds of customers.
Christopher Astley set up a company called Reclaim4me two years ago after he successfully demanded a £4,500 refund on overdraft fines.
This inspired him to start a firm doing the same for others.
But after scoring a handful victories for clients – including retrieving £23,000 for one business – the application process came to a halt when banks launched a test case challenging such retrievals.
It has meant that 2,500 of Winstanley-based Reclaim4me's customers have been in limbo since July 2007 waiting for a result.
Last Thursday came the news Mr Astley was hoping for: that the Court of Appeal had dealt another blow to the banks' case.
With large parts of the banking sector already Britain's public enemy number one, he is now looking to rejoin the battle.
The 45-year-old said: "The Government is continuing to pump billions of pounds of taxpayers' money into UK banks in order to restart lending and, as a stated consequence, stimulate our declining economy through increased consumer spending.
"With high street banks still paying outrageous bonuses and discretionary pensions in the face of record losses, it seems that this strategy is failing.
"Yet experts conservatively estimate that more than £20bn is owed by UK banks and credit card companies, to their customers, in unfair penalty charges.
"I set up Reclaim4me in 2007 specifically to help people navigate the complex and time consuming process of reclaiming these charges.
"I had only found out by chance that this was even possible when someone mentioned it in passing in 2006. I looked into it and made a successful claim. There were several rejection letters but then they paid up.
"I realised that this could become a business and so I began to take on cases after being licensed by the Ministry of Justice in respect of regulated claims management activities. Before the court proceedings started I had had 26 victories out of 26."
He operates a no-win-no-fee policy and takes 20% of whatever is recouped.
His particular beef was about the "disproportionate" penalties imposed for going just a few pounds overdrawn, which have crept up from an average of £15 to £35 in a few short years.
But in 2007, eight financial institutions and the Office of Fair Trading agreed to stage a test case in the High Court to resolve the legal issues of such claims at which point all cases were suspended.
The first round of High Court hearings in 2008 ended in defeat for the banks. Mr Justice Andrew Smith ruled that the OFT had the power, under the 1999 Unfair Terms in Consumer Contracts Regulations, to decide if the banks' charges were fair or not. Now Sir Anthony Clarke, Master of the Rolls, has dismissed the banks' appeal.
Mr Astley said "Despite their appeal being thrown out, and being refused leave to appeal further, the banks continue to delay, this time by seeking permission from the House of Lords... so claims will continue to be frozen for as much as another 12 months while the banks continue to rattle the tin under the noses of the very taxpayers to whom they owe the money!
"If the Government really want to prime the pump of the economy they could simply stop the banks procrastinating."
Victory for bank charge crusader - Wigan Today
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Victory for bank charge crusader
CASH FIGHT: Christopher Astley who is taking on the banks in a battle over ‘unfair’ charges
« Previous
« Previous
Next »
Next »
View Gallery
Published Date:
05 March 2009
By Charles Graham
A Wigan entrepreneur who took on the banks over "unfair" charges and won says he is a big step closer to doing the same for hundreds of customers.
Christopher Astley set up a company called Reclaim4me two years ago after he successfully demanded a £4,500 refund on overdraft fines.
This inspired him to start a firm doing the same for others.
But after scoring a handful victories for clients – including retrieving £23,000 for one business – the application process came to a halt when banks launched a test case challenging such retrievals.
It has meant that 2,500 of Winstanley-based Reclaim4me's customers have been in limbo since July 2007 waiting for a result.
Last Thursday came the news Mr Astley was hoping for: that the Court of Appeal had dealt another blow to the banks' case.
With large parts of the banking sector already Britain's public enemy number one, he is now looking to rejoin the battle.
The 45-year-old said: "The Government is continuing to pump billions of pounds of taxpayers' money into UK banks in order to restart lending and, as a stated consequence, stimulate our declining economy through increased consumer spending.
"With high street banks still paying outrageous bonuses and discretionary pensions in the face of record losses, it seems that this strategy is failing.
"Yet experts conservatively estimate that more than £20bn is owed by UK banks and credit card companies, to their customers, in unfair penalty charges.
"I set up Reclaim4me in 2007 specifically to help people navigate the complex and time consuming process of reclaiming these charges.
"I had only found out by chance that this was even possible when someone mentioned it in passing in 2006. I looked into it and made a successful claim. There were several rejection letters but then they paid up.
"I realised that this could become a business and so I began to take on cases after being licensed by the Ministry of Justice in respect of regulated claims management activities. Before the court proceedings started I had had 26 victories out of 26."
He operates a no-win-no-fee policy and takes 20% of whatever is recouped.
His particular beef was about the "disproportionate" penalties imposed for going just a few pounds overdrawn, which have crept up from an average of £15 to £35 in a few short years.
But in 2007, eight financial institutions and the Office of Fair Trading agreed to stage a test case in the High Court to resolve the legal issues of such claims at which point all cases were suspended.
The first round of High Court hearings in 2008 ended in defeat for the banks. Mr Justice Andrew Smith ruled that the OFT had the power, under the 1999 Unfair Terms in Consumer Contracts Regulations, to decide if the banks' charges were fair or not. Now Sir Anthony Clarke, Master of the Rolls, has dismissed the banks' appeal.
Mr Astley said "Despite their appeal being thrown out, and being refused leave to appeal further, the banks continue to delay, this time by seeking permission from the House of Lords... so claims will continue to be frozen for as much as another 12 months while the banks continue to rattle the tin under the noses of the very taxpayers to whom they owe the money!
"If the Government really want to prime the pump of the economy they could simply stop the banks procrastinating."
Victory for bank charge crusader - Wigan Today
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