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South Ayrshire Council News
No Need to Pay to Reclaim Bank Charges
South Ayrshire residents tempted by phone calls or adverts from companies offering to help them claim back hundreds of pounds of 'unfair' bank charges are being advised to think carefully about the service they might receive for their money.
The advice follows on from complaints from concerned consumers to South Ayrshire Trading Standards after unsolicited telephone calls from companies offering to assist them to claim back 'unfair' bank charges. They usually ask consumers for their bank details to take a payment of £49.99 for the service. Concerned consumers who contacted South Ayrshire Trading Standards have been apprehensive about releasing this information as banks, building societies and Trading Standards Services often warn against giving such important information over the telephone.
Many consumers had their claims for possibly unfair bank charges on hold pending the result of a court case between the banks and the Office of Fair Trading (OFT) over the fairness of these charges. A Court of Appeal decision has now supported the OFT's view and the test cases to reclaim unfair charges are able to progress. The banks were being challenged to justify contract terms that appear to allow excessive penalty charges and costs for things like unauthorised overdrafts or routine letters. As a result some companies are taking the opportunity to 'sell' information to consumers on how to go about to reclaim these charges.
However consumers who have paid for this service were disappointed to discover that all they would get for their money is a set of documents advising them on how to claim back the charges without any further assistance from the company. Consumers who expected the companies to intervene on their behalf to reclaim charges simply received a 'self help' kit which is available for free from other sources including South Ayrshire Trading Standards.
A spokesperson for South Ayrshire Council said: "The UK Ministry of Justice has responsibility under The Compensation Act 2006 for the regulation of any claims management activities. Legally such businesses must be authorised. Providing claims management services without such an authorisation is an offence. Although all of the companies concerned are authorised by the Ministry of Justice, we have some concerns about some of their selling methods. We are in contact with the relevant Trading Standards Services where the businesses are based."
Councillor Peter Convery who is responsible for Trading Standards issues commented: "I would repeat our advice to consumers against giving account details, especially in relation to unsolicited calls. Most of the business activities we are dealing with at this time are not illegal nor are they seeking to misuse any information supplied by consumers.
However we would always advise consumers never to respond to unsolicited emails, letters or telephone calls asking for bank or credit card details. There is nothing to prevent people using these companies as long as they are fully aware of what they are getting for their money but the Council provides this information for free from our Trading Standards Service."
To receive further information visit the Trading Standards Advice and Intervention centre at 5-7 River Terrace, Ayr KA8 0BJ, telephone Ayr 616060, or visit the website at www.south-ayrshire.gov.uk/tradingstandards/.
Date Added: 01 May 2009 15:58
No Need to Pay to Reclaim Bank Charges
South Ayrshire residents tempted by phone calls or adverts from companies offering to help them claim back hundreds of pounds of 'unfair' bank charges are being advised to think carefully about the service they might receive for their money.
The advice follows on from complaints from concerned consumers to South Ayrshire Trading Standards after unsolicited telephone calls from companies offering to assist them to claim back 'unfair' bank charges. They usually ask consumers for their bank details to take a payment of £49.99 for the service. Concerned consumers who contacted South Ayrshire Trading Standards have been apprehensive about releasing this information as banks, building societies and Trading Standards Services often warn against giving such important information over the telephone.
Many consumers had their claims for possibly unfair bank charges on hold pending the result of a court case between the banks and the Office of Fair Trading (OFT) over the fairness of these charges. A Court of Appeal decision has now supported the OFT's view and the test cases to reclaim unfair charges are able to progress. The banks were being challenged to justify contract terms that appear to allow excessive penalty charges and costs for things like unauthorised overdrafts or routine letters. As a result some companies are taking the opportunity to 'sell' information to consumers on how to go about to reclaim these charges.
However consumers who have paid for this service were disappointed to discover that all they would get for their money is a set of documents advising them on how to claim back the charges without any further assistance from the company. Consumers who expected the companies to intervene on their behalf to reclaim charges simply received a 'self help' kit which is available for free from other sources including South Ayrshire Trading Standards.
A spokesperson for South Ayrshire Council said: "The UK Ministry of Justice has responsibility under The Compensation Act 2006 for the regulation of any claims management activities. Legally such businesses must be authorised. Providing claims management services without such an authorisation is an offence. Although all of the companies concerned are authorised by the Ministry of Justice, we have some concerns about some of their selling methods. We are in contact with the relevant Trading Standards Services where the businesses are based."
Councillor Peter Convery who is responsible for Trading Standards issues commented: "I would repeat our advice to consumers against giving account details, especially in relation to unsolicited calls. Most of the business activities we are dealing with at this time are not illegal nor are they seeking to misuse any information supplied by consumers.
However we would always advise consumers never to respond to unsolicited emails, letters or telephone calls asking for bank or credit card details. There is nothing to prevent people using these companies as long as they are fully aware of what they are getting for their money but the Council provides this information for free from our Trading Standards Service."
To receive further information visit the Trading Standards Advice and Intervention centre at 5-7 River Terrace, Ayr KA8 0BJ, telephone Ayr 616060, or visit the website at www.south-ayrshire.gov.uk/tradingstandards/.
Date Added: 01 May 2009 15:58
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