Step 3 - Write to the Bank asking them to refund your Bank Charges
Once you've created your Schedule of Charges (list of all the bank charges you're claiming for), you need to write to the bank asking them to refund your charges.
If bank charges have caused you to go into serious debt (and it does happen a lot!), and you have a default registered on your credit file, you can also ask them to remove this from your file. Its not guaranteed that they will, but theres no harm in asking!
You need to compose a letter to the bank asking for your charges back. If you have Microsoft Word, you can download the template letter below, which is a modified version of the template letter at the Consumer Action Group. There are shorter and simpler variations on various other sites, but you are showing that you have done your research and this is more likely to make the bank take you seriously, and make you a better offer.
Template Letter to ask the Bank to Refund your Charges
If you don't have Microsoft Word, the letter is shown below and you can cut and paste it into another application.
Make sure you replace all the sections relevant to you eg [NAME] with your own details.
There are also two optional sections, highlighted in blue:
- Interest - The letter assumes you are asking for statutory interest at 8% on top of your charges. If you are only claiming you charges back, remove the text mentioning the interest, and just give your total charges
- Removal of Default from your Credit File - If this doesn't apply to you, as you haven't defaulted on the account, remove this section.
Once you have double checked that all the details are correct, you can send the letter, making sure you include the Schedule of Charges from Step 2, to the banks Head Office. Again, as with all correspondance to the bank, you need to send it Recorded Delivery, so you have proof they received it, and the date on which they received it.
In the letter, you have given the bank 14 days to reply. There are now three things that can happen:
- They completely ignore the letter - Unfortunately, this is the most likely outcome at this stage, and is playing for time and hoping that you don't bother persuing them.
You must give them 14 days from them receiving the letter, and if after this time you have had no reply then its time to move on to Step 4.
Note that at this stage, you can't take them to court yet, you need to give them another chance, which you`ll do in Step 4 - Sending the Bank a Letter before Action
- They will make you an offer for "Full and Final Settlement" of your claim - Its very unlikely that the bank will back down at this stage and refund all your charges. They are much more likely to make you an offer, to refund some of the money. Its down to you whether or not you accept the offer.
If the amount they offer is close to your actual charges, then its seriously worth thinking about accepting it, as in the end its all money you didn't have before! Its best to settle the case out of court if you can.
However, if they offer you too little, for example many of the banks are now offering 50% of the amount you ask for, you should think about declining the offer, and moving on to Step 4 - Sending the Bank a Letter before Action.
Alternatively, you can accept the offer, but make it clear to the bank that you are taking the offer as partial payment only, and will be continuing your claim for the full amount of charges. If you don't accept the offer, or accept it only as partial payment and not a full settlement, carry on to Step 4 - Sending the Bank a Letter before Action.
- They settle your claim in Full - Obviously, this is the best course of action for you, but it very rarely happens at this stage.
Note that if you have asked for interest, and they have offered to pay the full amount of the charges without interest, you should accept the offer and waive the interest charges. You should not carry on and take the case the court to get the interest.
Example letter to send to the Bank asking for your Charges to be Refunded
[YOUR NAME]
[STREET ADDRESS]
[TOWN]
[COUNTY]
[POSTCODE][DATE]
[BANK NAME]
Request for repayment of charges
Dear Sir or Madam,
Re. Sort Code: [SORT CODE]
Account Number: [ACCOUNT NUMBER]I am writing to ask you to refund to me the charges which you have levied from my account over the last 6 years.
I now understand that the regime of fees which you have been applying to my account in relation to direct debit refusals, exceeding overdraft limits and so forth are unlawful at Common Law, Statute and recent consumer regulations. If you say that they are not, then will you please demonstrate this by letting me have a full breakdown of the costs to which you have been put by as a result of my breaches, in order to reassure me that your penalties really do reflect your costs.
Additionally, it has now been confirmed that your particularly high level of penalties are considered to be unfair per se by the OFT who reported on the 5th April 2006 and are therefore presumed to be unlawful in the absence of specific proof to the contrary.
I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.
I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.
I consider that your repeated representations that your charges are fair and reasonable are deceptive and that they have deceived me into agreeing to pay them.
Your concealment of the true nature of your charges has prevented me from asserting my right until now.
The charges total £[TOTAL CHARGES], plus as I believe I have been unlawfully deprived of the money, I have calculated £[TOTAL INTEREST] interest at the statutory rate, the amount the court will award, total £[TOTAL CHARGES + INTEREST]. I have attached a full schedule of the charges and interest with this document.
Additionally you have entered a default notice against my credit record. This default occurred merely in respect of unlawful charges levied by you or was the result of impecuniosity caused directly by the taking by you of penalty charges which you had applied unlawfully to my account.
In addition to full payment of the sum mentioned above, I require that you remove the default entry from the register. Please note that mere correction or amendment to the entry will not be acceptable.
I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets.
I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.
If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that these targets are more than sufficient for a large company such as yours with dedicated staff and departments.
After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.
Yours faithfully,
[YOUR NAME]
