Claim Bank Charges Back - Helping you to reclaim Unfair Bank Charges!

anks have refused to make public their case for charging rip-off overdraft charges.

Customers who want to see why their bank has hit them with charges will have to pay £100 to the High Court in order to get their hands on a copy of their defence. The Office Of Fair Trading is taking on seven banks and Nationwide Building Society over the validity of overdraft charges.

Both sides have lodged their arguments and the OFT has published its case on its site. Yesterday, it claimed the charges meant customers received credit on uneconomic terms and fees were disproportionate to the amount borrowed.

It also said charges did not relate to services provided but were carried out for the benefit of the banks themselves. And it claimed charges were not explained in plain language and were even liable to mislead. But the banks haven't published their defences. Instead anyone who wants to see an individual bank's case will have to pay the standard £100 High Court fee.
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The Mirror asked the banks for a copy. All refused or couldn't get hold of one. Once more, they are putting up hurdles to stop consumers getting a clear picture of how their current account works.

Instead of being open and transparent they have just added to the fears that they have something to hide.

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MIRROR readers being bullied by their bank have been promised protection.

And the Financial Ombudsman Service says it may also award them compensation for any distress caused.

The pledge comes after we were swamped with calls for help from distraught readers.

Just like stroke victim Ray England, 65, whose plight we reported two weeks ago.

Along with many other readers, Ray, from Southend-on-Sea, Essex, was being driven crazy by a computer-generated barrage of menacing calls from his bank.

The caller is different each time so the poor borrower has to explain their situation over and over again.

The victims also include two readers who were forced to stop work to undergo treatment for life-threatening cancers.

Several have been left so badly shaken by their ordeal that they do not want us to name them or even let their bank discover they have been talking to us.

And one Gulf War veteran was so upset that his psychiatrist warned his bank that their tactics could make him suicidal.

Ombudsman spokeswoman Emma Parker said: "This is very shocking and it's certainly something we have had complaints about this.

"We would hope that lenders would be positive and sympathetic when they are dealing with borrowers in difficulty.

"We can understand the distress suffered by borrowers who are asked to explain their problem again and again and find it makes no difference.

"If you feel you are being badly treated, first complain to your bank. If it does not stop call our consumer helpline (020 7964 1000) and we will write to the bank on your behalf.

"If it reaches the stage of a formal complaint we can award compensation for any distress this has caused."

Cancer sufferer Lee Willshire has been hounded by his bank ever since his throat problem forced him to stop work 20 months ago.

Lee, 31 from London Colney, Hertfordshire, had borrowed £3,000 from Sainsbury's Bank to buy a motorbike.

He was unable to meet the payments for the year he was off work having treatment. He's now allowed to do two hours a day filling shelves at a local supermarket - Sainsbury's.

"My employer Sainsbury's has been very supportive," he says. "But Sainsbury's Bank has been ringing me night and day."

Another cancer victim - too scared to be named - was diagnosed with ovarian cancer last year.

She and her husband had to close their small catering business to undergo surgery and chemotherapy while he became her carer.

They have put their house up for sale to clear their debt to the bank. This has not stopped the bank making repeated phone calls demanding more money.

"You never get to speak to the same person," they told us.

"We have to deal with a total stranger with every call and go back over it again and again."

Road crash victim Charles Nimmo, 50, has been unable to work since he broke his neck and back when his van crashed with a burst tyre on a motorway 18 months ago.

Despite medical treatment he is still in constant pain.

And yet the former glazier and his wife Suzanne, 48, from New Addington, Surrey, were pursued day and night by HSBC over £16,000 in loans they were unable to repay.

"It got to the point that Charles was afraid to answer the phone.

"And in doing that he has missed important calls from his doctor," said Suzanne.

"At weekends the calls started at 8am and carried on until 10pm. It was a different person every time.

We have complained repeatedly but the callers say they can do nothing to stop them as their computers keep telling them to go on making the calls. It's stopped now but only after we complained time and again."

To make things worse, the bank talked them into paying £3,000 up front for costly payment protection insurance which was added to their loan. But the policy only covered Suzanne so it was a waste of money.

Our readers' experiences came as no surprise to the The Independent Banking Advisory Service, which helps people who have problems with their banks.

Chief Executive Eddie Weatherill said: "When the banks started introducing these automated phones three years ago they claimed this was to prevent people getting deeper into debt.

"I warned then that people would feel harassed by these calls unless there were careful controls on how many calls can be made in a day or week.

"It seemed to me this was all about putting the frighteners on customers to pay up and that's proved to be the case."

Advice

IF you are being hounded by your bank then complain in writing. If that fails call the Financial Ombudsman Service on 020 7964 1000. For help with debt contact your local Citizens Advice Bureau, the National Debtline (0808 808 4000) or the Consumer Credit Counselling Service (0800 138 1111).

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COURTS will try to turn away claims over rip-off bank charges by sending them to a free ombudsman service.

Thousands of bank customers will be directed to the Financial Ombuds man Service rather than taking legal action to win back charges imposed for accidentally slipping in to the red.

The courts are struggling to stay on top of the stampede as thousands of customers try to recover these fees.

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Around 200,000 have successfully reclaimed rip-off charges in the last 18 months, forcing banks to repay a total of £20million.

Judges are now so overwhelmed with these cases that they have started setting aside specific days to deal with them.

And the Courts Service's money claim website is being upgraded to handle a doubling of demand.

The courts believe the Financial Ombudsman Service will cope better because it has dealt with financial battles like this before.

Already it receives 3,000 complaints about bank charges every week.

Later this week a message will be put on the money claim website and anyone receiving a reclaim form from the county court will be told about the ombudsman.

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A MUM has won a settlement for harassment after being hounded by her bank for money she did not owe.

Battling Alison Turner, 31, was reduced to a tearful wreck after being bombarded by Halifax Bank with 33 phone calls and letters.

She brought a legal action under the Protection from Harassment Act.

The single mum-of-two is now expected to receive a cash payment after the bank agreed to settle out of court.

Alison, from Plymouth, was pestered by staff for £775 in overdraft charges the bank had already agreed to wipe out.

Halifax said yesterday: "We have no comment other than it's settled."

Alison's troubles began after she successfully forced the bank to wipe out £775, made up of a string of unjustified £30 charges imposed for going overdrawn.

Amazingly, it took six weeks to clear the debt. But though Halifax had agreed not to contact her, in that time Alison was bombarded with 33 phone calls and letters demanding the money she no longer owed.

The persistent calls flooded in at night and weekends. Sometimes Alison's two children answered the phone and were asked to provide security details.

As the relentless hounding continued Alison, 31, suffered anxiety, stress and emotional problems and was frequently reduced to tears.

Eventually she brought a landmark legal action under the Protection from Harassment Act 1997 seeking an injunction against the bank and "substantial damages".

She has now won an out-of-court settlement in a triumph for consumers against the might of big banks.

Last night Alison said: "I've been told by my solicitors not to say anything."

But a neighbour in Devonport, Plymouth, said: "She's a lovely woman.

"She was being bullied but decided to fight back. Whatever she has won she really deserves."

Eddie Weatherall, of the Independent Banking Advisory Service, said: "This is a step in the right direction. People still get rung late at night and repeatedly phoned on their home number.

"But making three or four calls on the same day is harassment.

"People are now more aware that banks shouldn't be doing it and are telling them to p**s off. If you say to a bank 'You're harassing me', they'll take it quite seriously."

Consumer group Which? added: "This is a different case than most because it's based on a bank's behaviour. Most actions against banks are based on financial matters rather than the way someone feels they've been treated.

"It's another example of how people can keep challenging banks. If they feel they have a case they should seek advice. It takes time and patience - but it can be done."

When Alison was first hit by the bank charges she was so desperate she was about to approach a loan shark. Then she spoke to lawyers.

She said earlier this year: "There was a lot on the news about banks not being allowed to charge excessive overdraft penalties to customers. It made me think and I took advice."

When she launched her action for harassment, she said: "I was bullied by the bank and made to feel a failure for getting into debt.

"If customers are having problems, banks should try to get them back into the black not make their position worse by harassing them on the phone.

"I got calls at 6.20pm on a Friday and early on Saturday morning. The constant calling reduced me to tears."

Solicitor Neil Mercer said at the time: "She was constantly harangued for money she no longer owed.

"It caused sleepless nights and great concern. There's no question it amounted to harassment."

The Financial Ombudsman Service said customers taking action against banks have jumped by 50 per cent to more than 100,000.

It added: "There are now clear channels on how to go about challenging the banks. There's very little case law history, so banks are wary of going to court.

"They don't know what will happen. Even if a bank wins, it will be portrayed as the bad guy. So more and more are settling out of court."

Halifax Bank said: "We have no comment to make about the case other than to say it's settled. There's no court hearing."

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MORE than one and a half million people have now joined the battle against banks to get refunds on rip-off penalty charges.

No one knows exactly how much banks have paid out to customers who challenge unfair fees - such as being charged up to £39 for going a few pence overdrawn - but it is estimated at tens of millions of pounds.

Now, despite a minor setback last week when Birmingham County Court dismissed a customer's claim that Lloyds TSB's overdraft charges were unfair, campaigners are urging consumers to step up the fight.

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Nic Cicutti of finance website moneysupermarket.com said: "I'm sure there will be some senior bank executives hugging themselves with glee after this ruling. But this is highly unlikely to be the final word in what has been a long campaign to stop banks overcharging their customers. My strong message would be to keep on claiming, as the odds are still stacked in your favour."

A spokesman for Lloyds TSB said; "The court has agreed with us that these are charges for a service and not default or penalty fees as has been argued by others."

But in most cases so far, banks have settled claims without going to court. Penalty charges - some of them are outlined in our table on the right - are imposed when banks have to return direct debits, standing orders or cheques when there isn't enough money to pay them - or because a customer goes overdrawn without permission.

In last week's case, the District Judge said the charges on claimant Kevin Berwick's account were "legitimate fees for servicing his account" - but that doesn't set a precedent for other claims, which are being settled in customers' favour every day.

A spokesman for uSwitch.com said: "It is worth noting that last week's ruling has come from a district court, and we assume it will not be binding on any other court in the country. This ruling should not affect other cases currently being heard and banking customers still have every chance to continue fighting to reclaim their excessive bank charges."

Consumer groups insist the charges are illegal because they aren't proportionate to the actual costs banks incur. Martin Lewis of consumer website MoneySavingExpert.com, who has seen more than three million downloads of his "template letters" to send to banks, said: "More than a million people have either reclaimed or are in the process of reclaiming bank charges through Money Saving Expert alone, and with the other consumer sites also championing the cause, the total is likely to be in excess of 1.5 million people. This is a substantial portion of the UK adult web-using population, making it a true red blooded consumer revolution."

If you think you could be owed money act now. A survey by www.consumeractiongroup.co.uk found that £11 million had been returned to 7,564 people who responded.

And Stephen Hone, who set up the website www.penaltycharges.co.uk after falling victim to bank charges himself, said said: "We've just helped one guy get back over £27,000 in charges on a business account."

Penalty charges are being investigated by the Office of Fair Trading, who will announce their findings at the end of the year. Kevin Mountford, head of current accounts and savings at moneysupermarket.com said: "It is imperative consumers stand their ground. If they do not get any joy at first call they should insist on pushing through the chain of command.

"There is evidence providers will offer a paltry sum to settle but this should be seen as an admission of guilt, so hold out for more."

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GREEDY banks are finding new ways to claw back cash from customers.

Fearing a crackdown on charges, they are hitting back with new ruses.

This is despite the "Big Five" - HSBC, Barclays, Halifax Bank of Scotland, Lloyds TSB and Royal Bank of Scotland - making combined profits of £41.3billion in the past year. That's £131 a second.

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Reader Phil Hartney was the victim of one of these sly money spinners. When he opened his Virgin Money credit card statement he was stunned to find he had been hit with a £10 charge - for being £12.72 in credit.

Phil, 54, of Glossop, Derbys, said: "This seems wrong. I was amazed I could be made to pay for keeping my account in good order. I keep this card for emergencies. I don't want to owe anything, so I left it in credit. It's unfair to sting me."

He has been trapped by the latest fee - a credit balance service charge. Any Virgin Money customer with a positive balance on a card for more than 12 months will be charged £10.

A Virgin spokesman said: "It costs us money to send out statements and look after these accounts.

"We're not making money out of people with positive balances. But you only pay this fee if you have been in credit for the full 12 months and customers were warned it was coming."

The banks' attempts to boost their profits comes as the Office of Fair Trading launched a probe into the cost of current accounts.

The watchdog has demanded that the banks come clean over how much customers really pay for "free" banking.

And it follows an earlier demand that credit card charges for those who miss a payment or bust their credit limits should be lowered.

Virgin is not alone in inventing new charges. Credit card giant MBNA has whacked a £10 fine on customers who keep their cards in credit for 12 months.

And Lloyds TSB has made those who failed to use their card "regularly" fork out £35. Lloyds and MBNA claim that only a small fraction of their customers were hit by this fee.

But Lloyds refused to say how long customers could go without using their card without being hit by the penalty.

Its means existing cardholders have no idea whether they will be stung by the fee in the future.

The Banking Code Standards Board, which oversees fair play, said Lloyds was in the clear because it gives customers 30 days in which either to use the card or close their account.

But this will be little comfort to account holders who are being kept in the dark over how to avoid incurring the charge in future.

Other banks maintain their profits in a different way.

Co-op and Northern Rock started charging customers £2 a month following the OFT demand that late payment fees had to be dropped to around £12.

Now Your Money can reveal Morgan Stanley is to follow suit. Customers on its Black card - which is aimed at people with a history of debt - have been sent letters saying they had to pay £20 a year.

David Kuo, head of personal finance at comparison site Fool.co.uk, said: "Some of the practices we have seen, especially in the credit card market, are downright devious and prey on vulnerable customers.

"These tactics belong in sleazy Soho clip-joints rather than high street banks. Banks must learn to be more open and honest, so customers can make informed choices."

To avoid paying these charges you must keep an eye on your monthly statements.

Under the Banking Code you have 30 days notice to contest the charges.

If you do not get this, complain to the bank directly. If necessary, threaten to close your account. If that does not work take it up with the Financial Ombudsman Service.

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GREEDY HSBC bosses were last night slammed for heaping yet more misery on their long-suffering customers.

The bank is already under fire for making record profits of £11BILLION last year while fleecing people with outrageous penalty charges.

Now it has decided to ban its ordinary, hard-working customers from a branch that will cater exclusively for the rich. And a bank spokesman twisted the knife by declaring yesterday: "Not everybody in the world is equal.

"Some people have higher incomes and need greater services through the bank.

These customers demand a better service."

The branch will only serve those who have savings of at least £50,000, a £200,000 mortgage or a £100,000 mortgage plus a £75,000 salary.

Ordinary customers can also receive the personal service - but only if they pay £19.95 a month to join the bank's Premier Service account.

Eddie Weatherall, of the Independent Banking Advisory Service, said last night: "It's outrageous.

People want to be able to walk into their local branch and talk to someone about their account.

"What is worse is the fact that banking is supposed to be a service industry. Instead they have been steadily removing the service we receive until it has almost disappeared. Services are being cut to make for record profits."

Customers who already bank at the HSBC - slogan the world's local bank - in the millionaires' playground of Poole, Dorset, will be forced to make other arrangements.

They will be able to use cashpoint and paying-in machines outside the branch. But if they want to be served personally, they must go to another branch a mile away.

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BANKS could hammer customers with another £3.5billion in penalty fees this year after a probe into rip-off charges was extended by nine months.

After a six months inquiry, the Office of Fair Trading said it was launching a full investigation - which would take until the end of the year to complete.

The OFT was slated by MPs and consumer groups for "dragging its feet"

Its decision came as a "whistleblower" told the Mirror it actually cost no more than £2 to bounce a cheque.

That is a tiny fraction of the £30 to £35 the banks typically charge customers who bounce cheques or exceed their overdraft limit.

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Almost two-thirds of people hit by "unfair" overdraft charges have yet to try to reclaim the money, a study reveals.

Some 64 percent of bank customers have not asked for a rebate of charges levied for slipping into the red beyond their agreed overdraft, according to consumer group Which?

A fifth of them said they feared how their bank would react, while 22 percent thought it would be too complicated and a third said they would not know how to go about it.

Of those who had made a claim, 85 percent had been successful in getting at least some of the money refunded, the survey showed.

But a quarter of them said their bank had been unhelpful and unresponsive, while a further third said they had to chase their bank for a response.

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BANKS are under attack from a swelling army of customers complaining about sky-high penalty charges.

But as people power gathers pace, a bank backlash could see them clawing back their cash by scrapping free banking.

The number of people complaining to the Financial Ombudsman has rocketed from 1,000 people a week at the start of February to 25,000 now.

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