22/12/2009 by bill.

In the light of the recent Supreme Court Ruling, the Office of Fair Trading has announced that it has dropped its investigation into unfair bank charges including overdraft fees. This is a further blow to the millions of bank customers who have lodged claims.

The Financial Ombudsman says that having considered the Supreme Court’s decision – and its implications – very carefully, its view is that the legal ruling means it will not generally be able to help with cases that involve “template” or “standard letter” complaints about unauthorised overdraft charges.

But in keeping with its usual approach to complaints that are referred to the Ombudsman, it will review each case individually – to see whether there are any one-off circumstances that may apply. For example, it would expect current-account providers to deal positively and sympathetically with a consumer in financial hardship – including where bank charges had added to their difficulties.

So, any bank customer suffering hardship as a result of overdraft charges should contact their bank for help as soon as possible and lodge a complaint with the Ombudsman if they are not satisfied with the reply.

More about UK Bank Accounts

Posted in Bank accounts, Bank charges | Print | No Comments »

25/11/2009 by bill.

The Supreme Court has ruled in favour of the banks in their appeal against previous court rulings that allowed the Office of Fair Trading to investigate the fairness of unauthorised overdraft charges.

The ruling will come as a blow to the millions of bank customers who have complained about unauthorized overdraft fees that are generally £30 or more everytime you go over your overdraft limit. Many of them were seeking compensation that could cost the banks billions of pounds.

Prior to the ruling the OFT had said if it lost the case it would seek other ways of investigating overdraft charges and the Supreme Court has stated that the OFT could still scrutinise the charges under other regulations but ruled out an appeal to the European Court of Justice.

It is not clear where this leaves the many bank customers who have already submitted claims and the many more who would have done so had the ruling gone the other way but click here to see our current advice.

Posted in Banks, Bank accounts, Bank charges | Print | No Comments »

16/04/2009 by bill.

In February the Appeal Court threw out an appeal by eight banks against a High Court ruling that the OFT can investigate the fairness of overdraft charges.

The ruling paves the way for millions of pounds worth of refunds, however for the time being thousands of claims for compensation will remain frozen pending an appeal by the banks to the House of Lords. It is estamated that around 1 million people have submitted claims for compensation.

Anyone who feels that charges on their overdrafts were unfair should still start the process od claiming by writing to their bank, that way they will be in the queue when any process of refunds starts. The Financial Ombudsman website advises how to go about this.

For more information about banks and bank charges see moneyjungle.net

Posted in Banks, Bank charges | Print | No Comments »

29/12/2008 by bill.

For more about Bank Accounts including claims for refunds of unfair charges see moneyjungle.net

Posted in Banks, Bank accounts, Bank charges | Print | No Comments »

24/04/2008 by bill.

The big banks have lost a test case about unfair overdraft charges. The judge decided that the Office of Fair Trading can rule on whether charges are too high. However, the judge emphasised that his ruling did not necessarily mean that the charges made by banks are too high and further hearings are now likely.

Many banks offer free current account banking with no charges unless the balance goes into the red. When it does the penalty charges can be very high. The Office of Fair Trading has been investigating the high penalty charges imposed by some banks. Thousands of customers have lodged claims against banks and these are now on hold pending court rulings and a decision by the OFT on possible limits on charges.

If you think that you have been over charged you may be able to get a refund and you need not wait for the final court ruling to make a claim. See moneyjungle.net for further advice.

Posted in Bank charges | Print | No Comments »

26/07/2007 by bill.

A number of UK banks, including HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, have agreed to go to court in a test case over high overdraft charges.

Up to now banks have been reluctant to go to court and have settled thousands of claims out of court rather than risk a test case that might rule against them.

For more see http://news.bbc.co.uk/1/hi/business/6918140.stm

Pending the outcome, banks may now delay dealing with claims from customers who feel that high fees charged were unfair. However we recommend that anyone who feels that they have been overcharged should continue to complain. See moneyjungle.net for guidance on how to go about this.

Posted in Bank charges, Personal Finance | Print | No Comments »

29/06/2007 by bill.

At a mass hearing of bank fee cases yesterday, a judge threatened to use some of them as a test case. This could set a legal precedent forcing banks to refund excessive overdraft charges to thousands of customers.

Of 250 cases due to be heard yesterday most were settled in advance but in many other cases the judge ruled in favour of the claimant.

This could be good news for anyone who feels that they have been overcharged for unauthorised overdrafts, the banks have already settled many cases out of court to avoid a test case.

For advice on how to claim against a bank see moneyjungle.net.

For more on yesterday’s hearing see this BBC news item.

Posted in Bank charges | Print | No Comments »

16/05/2007 by bill.

Anyone in the process of attempting to reclaim bank charges that they think were excessive and unfair will be alarmed to hear that judge yesterday rejected a claim against Lloyds TSB. However, the decision by a District Judge, is not binding on other courts and even Lloyds TSB, in welcoming the decision, say they will continue to consider claims on their merits.

Anyone who feels that they have been unfairly treated should bear in mind that banks have already refunded fees - often several thousand pounds - to many who have claimed and seemingly have made budgetary provision for much more.

Our advice to anyone in this position is to start the process - advice on how to go about this can be found on moneyjungle.net.

Posted in Bank charges, Credit and Debt, Finance | Print | No Comments »