Over the last year or so the situation with usurious bank charges in the UK has got ridiculous with the county courts and ombudsman services getting increasingly bogged down by consumers claiming refunds. The regulator had to act but the FSA seems to have done so in a way that actually makes the situation worse, not better, for consumers.
There’s a good article explaining why here: It’s Vital You Still Claim Your Bank Charges [Motley Fool].
Basically the FSA stipulation gives the banks, county courts and Ombudsman an excuse for putting off consideration of your case, until after the Office of Fair Trading’s pending High Court case has been resolved. That could take years. Unless you take specific action now you may lose the ability to reclaim all your charges since you are normally only able to claim back 6 years’ worth.
The Motley Fool article includes a link to a petition asking the FSA to change tack. Please consider signing it in support of all claimants.
UPDATE 2 Aug 2007: The Fool has since revised it’s advice: Some Good News From FSA On Bank Charges. It’s still imperative to act promptly, however.
this guy is talking out of arse!!!! FSA court case???? get your facts right….its OFT V Banks in court dumbass!!! you dont even know what you are talking about!!! bloody dumbo
and how is the situation worse???? would rather leave the issue about bank charges open or bloody get the courts to decide…once and for all? hate people who write stuff without knowing their facts….bloody stupid
Yes sam, sorry the court case is being brought by the OFT, I have duly corrected the article. However that’s not the main point. The OFT is right to bring a test case to resolve the matter since they’ve long stated their belief that these charges are unlawful.
The problem was the FSA’s stipulation that banks, courts, and the ombudsman may defer processing/investigating any new claims filed until after the OFT test-case is concluded. Whilst that might seem reasonable the concern in the linked article was that this might allow the banks to wriggle their way out of liabilites through the six-year rule – hence the advice to register your claim with the county court now (ahead of any response from your bank).
The 2 Aug 2007 update linked article shows that the FSA have responded to this concern by clarifying that they won’t allow banks to use the six year rule to dodge legitimate claims. So registering a claim with the county court is no longer valid but it’s still recommended to file a written complaint with your bank now so you have proof of it for after when the OFT case is settled.
the problem is that my overdraft is costing me interest,while i wait for the outcome,will i be able to claim this back
You could, arguably, claim your overdraft interest as damages if you can show that you would not have needed an overdraft if the bank hadn’t levied its unfair charges. But best to consult someone qualified to give legal advice.
What if I just don’t pay and argue my case through the bank and FSA or OFT anf keep a tight recorded case book. Will this work
Bank overdraft fees are becoming absolutely ridiculous. On my site, we get 4-5 people a day complaining about being unfairly charged. Bank of America has just agreed to now charges up to 10 overdraft fees per day at $39 a pop. Considering how they re-order transactions to optimize their fees, this is going to seriously hurt even more customers. Its time to stand up against these policies and demand change.