Is the bank charge court case a waste of time?

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Rebecca Atkinson
Fri, 23/05/2008 - 12:25

As expected, the banks have appealed the High Court's April ruling that allowed the OFT to potentially cap charges on unauthorised overdraft usage.

The case is likely to be heard by the Court of Appeal before the end of 2008 - but it could take years to resolve, meaning people entitled to refunds have a long wait on their hands. And in the meantime, more and more people are being hit with fines up to £30 for going overdrawn without permission.

But is there any point to this court case? After all, if the OFT wins, then customers still stand to lose out as banks will recoup their losses elsewhere.

And while banks are paying for the cost of the court case, surely the balloon effect means us consumers will end up footing the bill at the end of the day?

What do you think?

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Max A:

The banks should have admitted defeat yesterday rather than appeal, they just don't want to hand back the money is consumers, HSBC may have put money aside but the last think they want is to see that money in the banks of their customers!

Fri, 23/05/2008 - 15:00
petraman:

I think the OFT were entirely wrong bringing this case in the first place.
The charges the Banks make are clearly shown in their terms and conditions.
People should be responsible for their own actions and should not issue cheques etc if funds are not available.
If they go overdrawn or exceed their overdraft arrangement then frankly they are "stealing" and should be punished in line with the terms and conditions they signed up to.
I know that Martin Lewis on his website has been beating the drum for those who cannot, or will nottake the trouble to manage their finances and have been penalised, but frankly I consider his comments are made for his own self publicity.
I hope the Banks win the case, it will be justice for those of us who take care with their financial planning.

Fri, 23/05/2008 - 15:37
computab:

phil stilliard I was overcharged twice but as it was over 6 years ago, there is nothing that I can do. This legislation came in too late, it is now 9 years since, and as it is new, why should it be limited to 6 years? lawyers take years to decide, but others have time limits.

Fri, 23/05/2008 - 23:39
Guest (not verified):

I Think that you are very up your own arse i work for a company reclaiming charges there are may people who are having trouble with charges. If you belive that someone sould be charged in excess of £30 for being as little as being £1 overdrawn then maybe you should go into the profession of a loan shark.

Thu, 22/01/2009 - 12:27
Les1 (not verified):

How I agree with Petraman. I run my finances with care. On the very odd occasion I have gone overdrawn in the past I rang the bank and negotiated with them to lower charges and was always successfull. I however, was aware of the banks terms and conditions at the time and was aware that should I break the 'rules' I would to be charged. When signing up for a bank account it is up to us - the public - to check the terms and conditions so we are familiar with any penalties etc. We are after all responsible for our own actions!

Fri, 23/01/2009 - 18:36
Guest (not verified):

Are you NUTS

Just because a bank WANTS to charge hiked up fees (i.e. for a £12 letter and admin - fees are £ 35).

My money's in the bank and shores then up for lending - am I right in thinking that the banks shored up capital comes from my account.

Maybe the bank lending my money to customers mortgages etc without my consent constitutes stealing too ???

I ponder the thought of are you a banks chief executive or do you have funny coloured pink st peppers kaleidoscope eyes sky where you live ??

Mon, 16/02/2009 - 14:50
mbirkman:

I agree - the extent to which banks apply charges can very quickly turn a difficult time for some people into an absolute nightmare!  I have seen this time and again recently in my new role as a consultant for TheClaims-Warehouse.co.uk. We might not be able to help recover unfair bank charges but many people out there could benefit far more by taking a look at all their credit card and loan agreements as many that are issued before April 2007 may be unenforceable - which means the banks can't make you repay the outstanding debt!  The big lenders have set aside billions to deal with this and it is going to be far bigger than the bank charges payouts.

 

theclaims-warehouse can legally eliminate your debts employing specialist solicitors to challenge lenders who have issued unfair credit agreements. 

Wed, 18/02/2009 - 23:14
Guest (not verified):

The fact of the matter is that most credit cards taken before December 2006 (yes, the law changed in April 2007, but it is very rare to find succesful cases taken after Dec 2006) fall foul of the consumer credit act aswell as many millions of loans in circulation.

I did some searching on the net about this around a year ago after ebing approached by Cartel Client Review. I ended up using monsterclaims.co.uk as they only charged £95 at the time and they cleared my natwest loan and card. It took 9 months tho!!

I recently went on credit issues website and they seem to clear alot of Natwest debts. Natwest must have some major problems.

Sat, 25/04/2009 - 11:11
Guest (not verified):

In order to be classed as stealing a person must have first had the intention to go overdrawn. Nearly all cases do not involve intention to go overdrawn and are the result of oversight or unforseen events or perhaps the inablity to pay a debt as a result of rapid a change in finances. Even a bank holiday can disrupt payments enough to cause this problem.

While I understand this viewpoint and agree that contracts should be honoured, I think many banks are just charging far too much to say that the costs reflect expenses (try asking what the expenses are and you get a thick sneer from your bank manager).

Moreover, the money doesn't actually leave the account - nothing is paid to a third party - but you still pay. The only thing you are paying for is a binary flag on a computer package somewhere at headquarters and the cost of printing out a letter and postage. Only sometimes you don't even receive that - this definitely applies if you bank online.

As for getting justice for your financial planning, I find your personal lack of empathy for people less well off than you to be truly disgusting. Some people can't earn enough money to feed themselves properly, let alone plan their financial future. I bet you are a hotshot manager or something aren't you with plenty of spare cash. You should consider yourself lucky to be given the opportunity to earn so much that you can put some aside.

Any kind of planning of finances will bring benefits and I encourage anyone to do that - but when you don't earn more than a few pounds over your daily needs it doesn't take much to put you right back where you started...and banks are always the first (and greediest) to cash in.

I hope they get fleeced. They deserve it.

Sun, 06/09/2009 - 02:12
Bank Charges (not verified):

This is the reality if any person file a court case against bank, then definitely he/she has to suffer a lot for this and there may be chance that this case is run too long and hence the person except getting irritated.

Mon, 14/09/2009 - 05:45
roycharles (not verified):

i am overdrawn every month and ive asked time and time again for an overdraft but the
bank tell me that i have to stay in credit for up to 6 months to get one which is impossible.
my bank charges with abbey are around £200 per month ,sounds rediculous but its true,
ive argued with them constantly but they say their bank charges are fair.im in the progress of leaving abbey at the moment,they are the worst bank i have ever been with and i WILL be trying to get my money back.

Sat, 19/09/2009 - 10:16
stshar:

If people get a refund from bank charges. Which has been caused by these people going over their overdraft, and NOT taking due care and attension. It has nothing to do with the amount charged, it is all to do with the inability for someone to balance their own account, and blame it on the banks. If people cannot deal with their own mistakes, and must pass the buck, but saying that this is how the world is, people take no Responsibilities for thier own actions, and dont really care.

Move the blame to anyone else but not me.

These people who complain about bank charges, beware, everybody including you will end up  paying much more. Because we all need a bank, and all banks need to make a profit.

Thanks alot

 

 

 

Sun, 20/09/2009 - 20:29
stshar:

I agree with you 100%

Sun, 20/09/2009 - 20:34
fukwit (not verified):

some of the comments from the thrifty and complacent vary from pious to being truly chilling in their condemnation of those who have got into trouble. We must not forget that financial management is a skill that is learned, like speaking French.

Following deregulation, the financial sector, out of greed, preyed on a financially illiterate population. They sowed the wind, and we are all now reaping the whirlwind. Ultimately it is a human catastrophe for those who knew no better, or believed the assurances of economists and politicians that it was OK to borrow money. Anyone in debt is now getting a financial education in the worst way possible, losing their homes and dignity.

But to have fluent french speaker sneer at mistakes of others, and revel in their embarrassment, well all that shows is how incomplete is their own human education.

Tue, 22/09/2009 - 10:27