Bank charges – what to do.

[Admin]

What a great article this is: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632

I’ve been stung by bank charges a few times. I have phoned up the manager and managed to get the money back but I never realised that what they are doing is actually illegal.

The good news for anyone who has been hammered by their bank is that if they have been doing this to you then you can claim back up to 6 years’ worth of charges.

[Nucular]

Yea, I've been stung a few times too. After hearing an item (http://news.bbc.co.uk/1/hi/programmes/moneybox/4727642.stm) on this on Radio 4, I followed the links and found a site (http://www.bankcharges.info/) with various info and a standard letter, which I amended and sent to HSBC, who've been charging me through the nose for very minor accounting errors just lately.

I sent it a few weeks ago, and all I've had back so far is a "we are investigating your claims" letter, so I'll keep you posted. But I'm so irritated with them, I've a real mind to upsticks and go to a different bank. They've done this loads of times, sometimes when I've really struggled and asked them for help. The dastards.

[Admin]

This is the sort of issue that I think we should be promoting as skeptics. Skepticism is about finding the truth in matters and it's just as important with scams as it is with alternative medicine etc.

We're often seen as opposing what people believe in (the bad guys), but this is an issue where we can be the good guys by exposing a fraud that is costing people £3,000,000,000 per year.

Now that is some scam.

[Admin]

At least the OFT are attempting to do something about this scandal: http://www.oft.gov.uk/News/Press+releases/2006/68-06.htm

[tkingdoll]

I've been refusing bank charges for a while, they usually refund them "out of goodwill" if you make it known to them on the phone that you are aware of the legality of the situation. However, we recently had a situation where my husband was charged over £100 and the bank point blank refused to refund. Rather than go through the process of writing, he simply took his account elsewhere. When he called them to tell them this, they basically said that they didn't care. I guess the £100 was worth more to them then his ongoing business :-\

[Admin]

I put a small article on the main site just to help raise awareness of the issue.

http://www.skeptics.org.uk/article.php?dir=articles&article=unfair_bank_charges.php

I think the drawback when a bank refuses to issue a refund is that it puts the onus on the customer to take action. Most people don't know what to do.

The article on Money Saving Expert has links to pre-written letters etc.

[Nucular]

Yep, my bank are refunding (see earlier post) - plus, if I'm not mistaken, a little extra, weirdly.

They said in the letter that although they think they would win a court case, they're mindful of legal costs, management fees and suchlike, and therefore are willing to refund.

Should think so too!

John, I agree this is also a relevant issue to scepticism - it's a big scam, very reminiscent of other scams sceptics are known to wade into. If it would help anyone, I can post my letter and the reply - I based it on a 'model' letter from a website, but amended it to my own circumstances.

[Admin]

I think they like to give the impression that they would win in court - but they wouldn't.

I suppose a useable letter posted here would help anyone who comes across the issue via this forum. O0