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

Now that the bank have either ignored your letter, or offered you only a partial settlement, its time to give them one last chance to refund your bank charges in full before you take court action.

Use the template letter below, based on one from the Consumer Action Group, making sure you insert all the relevant details ie [YOUR NAME], [SORT CODE] etc. If you do not have Microsoft Word, the letter is included at the bottom of the page, so you can cut and paste it into another application.

Optional sections are highlighted in blue, and should be amended or deleted as needed.

• Interest - The first highlighted section needs to be removed if you didn’t ask for interest charges in your original letter.
• Removal of Default - The second highlighted section and everything beyond deals with removing a default notice, if you have a default notice from the bank on your credit file due to the bank charges. If you do not have a default, then remove everything in blue.

Don't forget to enclose a copy of your Schedule of Charges, as you did in Step 3 - Write to the bank asking them to refund your charges.

The letter must be sent by Recorded Delivery, so you know the date the bank has received it.

It’s a good idea to get familiarise yourself with the court process at this point, and get all the forms etc prepared (but don't submit them to the court yet), so that if the bank don’t offer you a satisfactory amount, or ignore your letter, you’re ready to file your claim with the court as soon as the 14 days are up.

Template Letter before Action

Once the bank has received the letter, the outcome will be one of the following:

• Your letter is ignored - Once again the bank may totally ignore your letter, in which case you will need to file your claim with the court.
• The bank will write back saying they are looking into it - This is fine, but if you haven’t had a proper reply after 14 days, you will file your claim with the court.
• The bank will make an offer - The bank may make an offer which is less than your total charges (ignore the interest at this point) on condition that it’s a "Full and Final Settlement". You need to decide whether to accept the offer, or accept the offer but tell the bank that you only accept it as a partial settlement, and you will continue to claim the rest of the charges.
• The bank will offer to refund all your charges - Again, this is the best course of action for you, and you would accept the claim. Note that if the bank offer to refund all your charges without the interest (if you claimed for it), you should accept the offer and waive the interest.

If you are not happy with the offer, then proceed to the next step, filing a claim with the court.

Template Letter before Action

[YOUR NAME]
[YOUR ADDRESS]

[DATE]

[BANKS NAME]
[BANKS ADDRESS]

LETTER BEFORE ACTION

Dear Sir/Madam,

SORT CODE: [YOUR SORT CODE]
ACCOUNT NUMBER: [YOUR ACCOUNT NUMBER]

I am very disappointed that you have failed to respond in a proper manner to my letter of the [DATE OF FIRST LETTER]. 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.

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 calculate that you have taken £[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 am enclosing a copy of the schedule of the charges which I am claiming. I have already sent you a copy of this in my original letter of the [DATE OF FIRST LETTER]

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 require repayment in full of this money and removal of the default notice. If you do not comply fully within 14 days then I shall begin a claim against you for the full amount plus interest plus a claim under ss.7 and 13 of the Data Protection Act 1998, plus my costs and without further notice.

Yours faithfully,

[YOUR NAME]