Tips On How To Reclaim Bank Charges?

Banking institutions are always imposing charges in some circumstances like going over the agreed overdraft limit, bounced cheque and others. There is not any problem with these charges, however, the quantity of fees being charged are way up too much as believed by many of us. Bank charges are far greater than the necessary fees if the banks are really just after the administration fees as the banks claim. These bank charges that are being imposed have become a significant source of income for the banks. A large amount of bank clients are now making any way to reclaim bank charges which they believe are unfair.

Daily Mail launched a campaign to aid the readers reclaim bank charges of the customers. That has led to most people to reclaim bank charges and asked the banks for their money back. However, banks were not prepared to set a legal precedent, just in case they lost, so they simply declined to argue cases inside the court. As an effect, lots of people successfully reclaim bank charges and the banks should pay out almost a billion of pounds in refunds. At that stage, the OFT got involved with the issue and decided to pursue an evaluation case in the High Court to establish whether the fees are legal and whether the clients are entitled to reclaim bank charges and other fees. The said test case has been on going since that time and has now emerged from the High Court with the OFT's right to review the fees which the banks were imposing.

Even though the High Court decided in favor of the OFT, the banks still need an option to take the case to the House of Lords for a final appeal. Given the scale of the claims they will face if they lose the case, there is no doubt that they will appeal. Since the banks have remaining legal option, the Financial Services Authority (FSA) has given the banks the permission to put all reclaim bank charges cases on hold.

Because of these, not many people reclaim bank charges cases will be processed by the banks until the OFT and banks issue is resolved and there are plenty of people trying to reclaim bank charges in the queue. There are some exceptions, such as those people who are in genuine financial hardship. They can still reclaim bank charges by taking their case into the Financial Ombudsman Service (FOS).

By: Floricel Parry

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Floricel Parrywrites about Reclaim bank charges and other financial products for United Kingdom based company www.bankcharges.com. SHE also tweets about unfair loan charges and the financial claims niche generally, as well as writing articles on personal finance, house sales, repossession and business finance.