Bank Charges Q and A

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Bank Charges Q and A

We can assist by taking over all aspects of your claim, meaning you don’t have to deal directly with your bank. Our in-depth experience in handling claims for bank charges means we are more likely to claim back higher amounts of compensation than customers who decide to act alone.

What do you claim back on my behalf?

We claim back all penalty charges plus any interest you have lost from the date the charges were debited. These include any charge the bank imposes for going over your overdraft limit, for a bouncing cheque or bouncing a direct debit. In some cases these charges can be as much as £40 a time.

Can I still reclaim a charge even though I was at fault?

Yes!

Will reclaiming charges affect my credit rating?

Reclaiming charges will have no impact on your credit rating. Banks cannot put a note about your claim on your credit reference files, but may decide to keep their own notes on you. A ‘difficult customer' tag attached to your name may impact any future applications you make to them.

Can I claim for credit card charges from more than six years ago?

No. You can only reclaim the last six years worth of charges, due to what's called the 'statute of limitations'. 

Can I still reclaim charges on an old bank account?

Yes. We can claim any charges back that were debited from an account no longer in use, as long as the account was open within the past six years and you have a record of the account number and sort code.

Is there a limit to the amount I can claim?

No! You are allowed to claim back whatever is rightfully yours, no matter how much that is.

Will I receive interest on top?

Interest on any charges can also be reclaimed. The standard amount that customers are entitled to is 8% for each year from the date that each individual bank charge was levied.

How long will the claims process take?

Unfortunately all claims are on hold due to the on-going legal proceedings of the bank charges test case and the FSA waiver, which has been extended by another six months to July 22nd 2009.

The Financial Ombudsmen Service has advised that it will not look at any cases until the Courts have made a Ruling, while any cases currently being heard in the County Court have also been put on hold until the High Court delivers its Ruling.

We will inform you of any developments with the test case as soon as they are announced. Once the case has been concluded, we will notify you of roughly how long it will take for us to reclaim your money.

Should I wait until the end of the bank charges test case before sending my claim?

No! Delaying your claim could mean you miss out on some money that is rightfully yours. You can only reclaim the last six years worth of bank charges, dating back from the time you submit a claim. Therefore it is crucial that you send your claim to us as soon as possible.

In addition, there are currently thousands of people waiting for the FSA waiver to be lifted so that they can proceed with their bank charges claim. Therefore the longer you take to send your claim to us, the further back in the queue you will be, meaning it could be months before the FSA even respond to your claim.

Will my existing or old bank be in contact?

Despite passing on your claim to us, you may still receive letters or phone calls from your bank regarding your claim. Any letters or messages received should be forwarded to us.

Could they close my account?

There have been cases in the past where some banks would often pay out, but then shut down their customer’s account as part of the deal. Although incidents of accounts being closed have dropped radically since the Financial Ombudsman ruled against banks from doing so, there is always a slight possibility of this happening.

Therefore, it is advisable to have another bank account setup elsewhere before beginning the claims process.