A study that was published by The European Commission in 2009 confirmed the Customer’s preconception of current account costs have been skyrocketing in the past. The United Kingdom ranks 11th of these European Countries whose financial institutions charge unreasonably high bank charges outside of the customer’s monthly payment, thus burdening the customer with more debt.
Penalties are end results of customer’s failure or inability to pay his/her loan. More often than not, these bank charges root from financial advisers who mis-sold mortgages to consumers, often without them knowing about it.
In addition, when one does not have enough knowledge about the loan and the charges and/or possible insurance that may or may not come along with it, one may easily be sold insurance, that in reality, have is optional and can be politely declined down. Banks keep this as a secret from their consumers so they could increase their revenues. They often pay big incentives to their consumers’ “trusted” financial advisers or lenders, into tricking them to buy loans; methodologically zeroing – more on the benefits than the important details of the contract – a fatal pitfall for debt.
Because of media’s ongoing pursuit for justice, awareness from print and TV compelled thousands of customers to lodge demands in order to reclaim bank charges these financial institutions have schemed to rob from them. This event has been hailed as one of the biggest consumer revolts to date.
However, banks do not guarantee their consumers that they will give back their money at a hundred percent not unless they can prove they have experienced financial hardship from overpayment of these bank charges.
This may be a little bit of a challenge, but with the right help and proper evidence to support your claim, assurance is given to those whose claims are viable.
That being said let us emphasize on evidence. Claims under these bank charges are feasible: if you have paid a penalty fee after going overdrawn without permission, which exceeds to an agreed overdraft limit, had cheques bounced, direct debits or orders that have been declined, then you have a viable case to reclaim bank charges.
Now you can calculate how much you were charged through sorting out on your bank statements. If you haven’t kept them, you can ask for a copy from your bank. Data Protection Act 1998 mandates that banks should provide consumers this specific information within a 40 day period, not charging more than ?10 for a hard copy. You can contact the Information Commissioner if the bank refuses to provide you with this information.
If ever your complaint gets rejected, the most immediate thing to do is to go to the Financial Ombudsman Service (FOS). The office orders companies to pay compensation for valid cases even if the bank has previously rejected it.
Do not be intimidated by how tedious and time consuming this process may take, instead, focus more on how your hard-earned money was pulled away from you without your knowing, after all, it is your legal right and it should not be any less of a strong motivation to reclaim your money.