Credit Charges
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Summary: If you think that you've been overcharged by your bank when you've slipped into the red, you're not alone. Here we aim to simplify the steps you'll need to take to retrieve you hard earned cash.
There's been a lot of publicity lately with reference to bank charges. If you've always believed banks must be right and accepted all charges blindly as a punishment for supposedly making a mess of things, think again. There have been a whole lot of overcharges out there and it could be time to sort out your own affairs.
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You'll need to collect all your statements for the past six years. This is as far as you can reclaim. If you can put your hand on all these - well done. If not, don't worry, you can ask your bank to let you have a list of charges. Be careful how you do this though. If you just ask for copies of statements for the period, you could be in for a shock. You could be charged up to £5 per statement! People have been charged as much as £500. A list should cost no more than £10.
First of all, you need to write to your bank. Ask for a complete list of all default costs incurred over the last six years due to unauthorised overdrafts and for payments, standing orders and direct debits. State that you understand you are entitled to this data under the Data Protection Act 1998 and that you expect a reply within 40 days. Also state that you understand that there should be a charge, not exceeding £10, for the information. Add the proviso that if they are unable to provide such a list, you would accept copies of statements covering the period but would not expect to be charged more than the maximum £10 under the Data Protection Act.
When this information is sent to you, you will be able to add up all the charges which you've paid. You will be able to reclaim one-off charges for going into the red, also daily or monthly charges for going overdrawn, charges for bouncing cheques, direct debits or transactions and charges for authorising a payment. Also add any interest charged on unauthorised overdrafts. Write again to your bank, requesting a refund of all the default charges which have been applied. State that you understand that under the Unfair Terms in Consumer Contracts Regulations 1999, charges must reflect administration costs and cannot be punitive. Say that you believe that the list of costs which you are enclosing is not lawful as they don't reflect the true cost of going into an unauthorised overdraft. Ask for these costs to be repaid, plus overdraft interest, in full. Also request removal of any default notices entered against your credit record. State that unless your requests are met within 14 days, you will begin a claim against the bank for the full amount, plus interest and costs incurred.
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