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Bank charging you? Claim it back!

SystemSystem Posts: 8,619 Staff Moderation Team
Story.

Basically penalty clauses in UK contracts are not legally enforcable if the penalty is greater than the cost of the breach to the other party.

That means a £30 overdraft charge isn't legally enforcable if you only went £29.99 over your limit.

Get writing to your bank and demand these charges back!

It's all written down in the law.
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Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Thank ya.

    I shall add it to my bag of tricks.

    And for your good self to have a think about - what is the consideration for a credit card? :)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I have a friend who kindly deletes them off my account..

    "Not what you know, it's who you know"
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Yes, and you can go back six years.

    The link I posted is legitimate, isn't asking for money, and tells you what to do.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You gotta get in quick, all the banks are being given guidelines on how to deal with these complaints and I have a feeling the loophole may be closing. Especially as someone just took HSBC to court and won.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    how can a bank close a loophole, when its legislation that creates it

    and its not even a loophole, the banks are just ripping people off, and shouldnt be
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Loophole wasn't the best choice of words and I agree with what you are saying. All I am saying is that I have heard that there are procedures being issued to staff for dealing with these complaints and it may become a lot harder to reclaim it. So get on with it LOL
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    do you know if the same rule applies for paypal? i spent £3.50 of money i didnt have, yet i got a £38 charge from them
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Loophole wasn't the best choice of words and I agree with what you are saying. All I am saying is that I have heard that there are procedures being issued to staff for dealing with these complaints and it may become a lot harder to reclaim it. So get on with it LOL

    i should imagine that if you take them to a small claims court for mass amount of charges, then there is no way they can avoid paying up, they are probly banking on those people having been charged under £50 to not bother because of the costs
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Interesting stuff. I'm owed a shitload.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I've just been charge 30 quid for going 12p overdrawn, told them about this and they denied all knowledge

    really pisses me off and has got me really upset too
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I sent the letter off, now the bank have sent me a standard letter asking me to call them, even though I specifically stated that I wanted a personalised letter or call back. When I ring them what should I say? Other than 'you useless wankers!!'
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I always thought those charges were a bit like kicking someone when they're down. What skin is it off the bank's nose if my phone company don't receive their bill money on time? There's obviously something or is it just an unneccessary charge?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    That's actually a really good article. I've never had an overdraft, but this may help if I ever do.

    Thanks
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I always go over my fucking overdraft, had to get it extended the other day in fact :( But often they will waive the charge anyway, as long as you agree with them that you'll pay in a certain amount within a certain time. I went over by £200 and they said I could pay £30 in and I wouldn't get charged. As it was, I just decided to get the limit extended instead.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Just received a letter back from my bank (2 pages of crap) basically saying that they are not going to refund the charges and 'if you do not feel you will be able to run your account in accordance with the terms and conditions, we may have to consider withdrawing certain facilities, such as any debit cards, overdrafts and chequeboks. Alternatively, you may wish to consider alternative banking arrangements' So me sending the letter was useless. Any advice?
  • **helen****helen** Mod malarkist Posts: 9,235 Boards Champion
    ButtonMoon wrote:
    Just received a letter back from my bank (2 pages of crap) basically saying that they are not going to refund the charges and 'if you do not feel you will be able to run your account in accordance with the terms and conditions, we may have to consider withdrawing certain facilities, such as any debit cards, overdrafts and chequeboks. Alternatively, you may wish to consider alternative banking arrangements' So me sending the letter was useless. Any advice?

    Which bank is that?
  • JsTJsT TheSite Graduate Posts: 18,265 I am one with The Mix
    Fucking scum twats.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    **helen** wrote:
    Which bank is that?

    Lloyds TSB
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    i managed to get them to cancel charges a few times, lloyds aint all that bad compared to my experiences with other banks
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    ButtonMoon wrote:
    Lloyds TSB
    Read the link. It says to go to the Moneyclaim site and fill in their form. It says that any fees incurred by doing this will be added the amount claimed from the bank too.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Read the link. It says to go to the Moneyclaim site and fill in their form. It says that any fees incurred by doing this will be added the amount claimed from the bank too.

    I have followed all steps from the MoneyClaim site - that is where I got my template letter from. I am now going to send the a Letter before Action - hopefully that will give them a kick up the backside. My claim is only around £100 but I am willing to lose money in the process because it is the principle of the matter more than money.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    .
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Isn't this also what tweety was after?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Dragged up from the dead so apologies, but just to let you all know that today the Co-operative Bank has refunded £890 of charges into our account. I'm chuffed to bits.

    Next stop - HSBC.


    Am I the only one who thinks you should keep better track of the money you have so you don't overdraw? Its not the banks fault you can't do math or spend wisely. I could kind of understand one place, but multiple? 100 is one thing also, as banks can charge alot, but nearly a greand? :confused: I can't even comprehend being so out of the loop with your own money that it would come to that.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    my_name wrote:
    Am I the only one who thinks you should keep better track of the money you have so you don't overdraw? Its not the banks fault you can't do math or spend wisely. I could kind of understand one place, but multiple? 100 is one thing also, as banks can charge alot, but nearly a greand? :confused: I can't even comprehend being so out of the loop with your own money that it would come to that.
    The bank gave her back the £890. Each charge is about £30 here but they were charging this for going say £1 over your limit. The £890 was taken by the bank in the form of charges over a period of time (I assume) but now they have given it back.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    .
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    .
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kermit wrote:
    Story.

    Basically penalty clauses in UK contracts are not legally enforcable if the penalty is greater than the cost of the breach to the other party.

    That means a £30 overdraft charge isn't legally enforcable if you only went £29.99 over your limit.

    Get writing to your bank and demand these charges back!

    It's all written down in the law.

    i'm sure at some point that will be very useful to know. thanks kermit. ;)
    ... *goes off to spend lots of money*
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    my_name wrote:
    Am I the only one who thinks you should keep better track of the money you have so you don't overdraw?

    Not as easy as that though, really.

    If you have a tight budget- one without much surplus- if an emergency knocks you into the unauthorised overdraft then they clobber you with charges. We started with a £30 charge, but because there's a £30 hole in the tight budget next month the standing order bounces, costing £30, and they then apply another £30 overdraft fee. And so on and so forth.

    Because of snowballing going £5 over your budget can apply charges of £300 or £400 in a matter of a few months, which is what happened to us.

    So actually, it is the bank's fault for taking £30 for a slight transgression which doesn't cost them anything anyway because they also charge me interest at 18% for lending me the money.

    And as GWST says, she's a qualified debt advisor, and I work in mortgages, so both of us know how to count, thanks a lot. Being able to count doesn't make £50 appear out of nowhere though.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I guess I was just taught how to manage money differently. PUt some away for emergency. Don't spend that 1 that you don't have. Link your spending accounts to savings accounts so if you go over you have money to cover it or have some type of overdraft protection if you know you cant possibly not spend that 1. Plan. Even the tightest budgets have room for saving. I know, I lived off a nickel above minimum wage whilst renting my own place all on my lonesome. Different teachings is all I guess. Thanks though. I was taught and believe that there is no reason to spend bank account money that you do not have. Not even one cent.
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