Credit Charges - page 2

Do you qualify for a refund?

You may be able to reclaim unfair charges quite easily

Most banks will reply with a partial refund as a demonstration of good will. You would be unwise to accept this. If you don't receive a satisfactory response, in other words, payment in full, you will need to write again to the bank. Re-state the facts given in your last letter and inform them that unless they pay the full amount owing to you, you intend to pursue the matter through the county court. Interest and court fees will be added to the amount in question. Give them 7 days and say that court proceedings will commence after that time.

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Assuming the bank refuses to pay the full cost you should go ahead and take them to court. Don't lose any sleep over this; no bank has defended a case to date. You can begin proceedings by going along to your local magistrate's court, or simply go online to www.moneyclaim.gov.uk and fill in the form. There's a small amount to pay, dependent on the size of the claim, but you get this back if you win the case.

On the form, you'll find a Particulars of Claim section, where you should state that "Between (insert dates), the Defendant applied a number of default charges to the Claimant's current account.

These charges are unlawful because they do not reflect the true cost of going into an unauthorised overdraft". State that in addition, they are a breach of the Unfair Terms in Consumer Contracts Regulation 1999, which state: "A term is unfair if it requires any consumer who fails his obligation to pay a disproportionately high sum in compensation." A charge is deemed to be penalty if, in reference to the case of Wilson v Love in 1896, it does not reflect the true cost of an item.

Then add - I am entitled to claim interest at 8 per cent per annum from the date when charges were first applied to my account until a judgment is made. The Claimant asks the court to enter judgment in their favour for the sum of (insert TOTAL CHARGES) plus interest.

If this sounds like too much hard work, it's only four steps, after all. And it's YOUR money.

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required. Think carefully before securing other debts against your home.

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