Reclaiming bank charges

Reclaiming bank charges

Unfair bank charges have been imposed on millions of people across Britain. But customers who have been charged up to £40 for unauthorised overdrafts, bounced cheques, or failed direct debits have made steps to fight back against bank charges.

Banks have long been accused of ripping off customers with the high charges they impose for minor account problems. Complaints against banks have soared, according to the Banking Code Standards Board, with most about interest rates and unfair charges .

Customers who slip into minor difficulties can see a mountain of debts pile-up, as banks charge £20 or more to send a letter and charge large amounts for going into overdrafts and missing direct debits .

You can try to claim back most of excessive charges, which the law would class as penalties. These will be anything over and above what an infringement costs the bank.

Examples are: £20 charges for letters sent out informing customers they have breached an overdraft limit, £30 for a bounced cheque or failed direct debit when the bank merely incurs the cost of informing the other party; the imposition of large daily fines with interest for going overdrawn.