[Bluerose]

Bank Charges Are Not Legally Enforceable

How to claim back unfair bank charges.
John Jackson © 2006.

Most of us at some time have had credit card or bank charges imposed upon us. We assume that we've agreed to such charges by signing a contract with such a penalty clause written somewhere in the small print. What most people do not realise however, is that these financial penalties are not legally enforceable.

Damages versus penalties.

When a customer does not have sufficient funds to cover their payments they are in breach of contract. A bank that refuses to make payments from such a customer's account is entitled to recoup any costs incurred as damages, and as long as the charge for damages represents the cost incurred by the bank they are entitled to make this charge; which would be recognised in a court of law.

The key, of course, is that any charges imposed by the bank should represent the cost incurred. If a bank charges more than their incurred costs, such as charging £35.00 for refusing to pay an electronically processed standing order, what they are actually imposing is a penalty: a charge that is meant to act as a punishment and a deterrent. Penalties are not legally enforceable.

This means that any bank, credit card company, or other financial institution that is charging its customers these financial penalties is taking money that they are not entitled to. It also means that they have their customers' money and the customers are entitled to claim it back. Charges paid in the previous six years can be claimed back, with interest too.

What can customers do about bank charges?

There are a few ways of claiming this money back although most people will not know what to do or how to do it. Fortunately, there is an article on the excellent website Money Saving Expert which has details on how to claim this money back. There are also links to the Bank Action Group who have provided documents to help customers through the process.

If you wish to claim back any of these excessive and unfair bank charges follow this link: Bank Charges: Reclaim them, they're unlawful. STOP PRESS! Major OFT / Bank announcement....

The four big high street banks make around £3 billion a year from these unfair charges. We need to understand that they have no entitlement to this money and that we can claim it back.

More information and links:

bankchargeshell.co.uk - Bank Charges

The Consumer Action Group - Bank Charges - Reclaim Bank Charges - Welcome

Money Saving Expert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more

Bank penalties making us see red | ZZZ Front | Guardian Unlimited Money

Spread the word.

This issue affects millions of people in the UK. Please consider linking to this page or any of the other links provided to get some publicity for this issue. Your website, blog, other user forums and groups are ideal places to raise awareness of this issue.

[Curlyben]

Bluerose, while I applaud the sentiment, unfortunately the article is seriously out of date and slightly misleading.

I have a long thread running covering the main issues surrounding this activity and I'm happy to assist any Brits with the whole process.
From personal experience Bank Action Group (The Consumer Action Group - Bank Charges - Reclaim Bank Charges - Welcome) is the BEST source for information and guodance.

Calling All Brits !!

[Bluerose]

Curlyben,

I apologise. It had been passed to me and I assumed it was pretty up to date (John Jackson © 2006).

Thank you for the heads up.


I wonder if it is possible to have this thread removed. I wouldn't want to be responsible for misleading anyone.

[Curlyben]

Bluerose, not to worry I'll let it stand.
It's great to see people actually taking an interest in this whole affair.

I as say, I'm available to offer assistance to any AMHD member that needs advice on this issue.

Feel free to PM me or post on the Calling All Brits thread.