Writing a bank charges letter

The banks have finanlly agreed that some bank charges are unfair.

PLEASE NOTE:This does not affect credit card charges.

If you try and request your bank or building society to repay the last six years then rules need to be followed. It is important to reclaim all unfair penalty charges back when writing your letter to the bank.

Banks have made a lot of money out of charging unfair bank charges. The reason that the banks charges are unfair is that the bank charges have not been in proportion to the actual costs the banks have incurred.

There are many letters available on the internet for claiming back unfair bank charges. We advise taking proper legal advice before any letter is sent (a sample is shown below).

The process of getting unfair bank charges repaid is a long court process taking the bank to court. If you are lucky the bank will want to avoid court action and the bank will pay out after receiving a letter from a solicitor.

Banks can only charge fees if they are in proportion to their time and costs on the matter. Bank charges are usually unfair because the banks computers usually not in proportion to the time taken by the bank to deal with the charge.

The OFT has granted current account providers a waiver from the normal rules on time limits for dealing with complaints about unauthorised overdraft charges. From 27th July 2007 firms will put customer complaints about this issue on hold until the test case is resolved.

However, the following steps are recommended as a guide to challenging excessive charges:-

1. Work out what you think you are owed

Go back through old statements. If you can’t find all of the information, check your internet banking facilities. If that fails, write to the bank asking for a list of any charges they applied to your account over the past six years. If they won’t give you this information, ask for copies of statements instead. They will however charge you for this service.

2. Write and ask for the money back

Make sure you keep a copy of the letter. If you have to chase the bank for a response, keep a record of who you spoke to, and when.

Sample Letter:

Dear Sir or Madam,

Ref: Account number: [your account number].

I would like to request a refund of unfair excessive charges that have been applied to my account. Under the UK Unfair Terms in Consumer Contracts Regulations 1999 charges must reflect administration costs and cannot be punitive. I believe that the following [enter details of charges] are excessive as they do not reflect the true cost of going into an unauthorised overdraft.

You have taken [enter charges amount here] from me, and I would like to request a repayment of this sum. I also ask you to ensure any default notices entered against my credit record are removed entirely.

Please repay this money in full and remove any default notices within 14 days. If this is not done, I will begin a claim against you for this amount, plus interest and my costs.

Yours faithfully,

3. See what the bank has to say

If they don’t respond – chase them.

If they say they will deal with the issue later, write back telling them what you think is a reasonable deadline.

If they refuse, write back claiming that the charges have been deemed unfair in the UK.

If they make you an offer, decide if this is reasonable. Remember – they are entitled to make a charge that reflects the actual costs incurred.

4. What next?

If you are still not happy, we have partnered with Claims Financial Limited, who are experts in bank charge reclaiming. If you feel your case needs assistance please make contact now..

Apply online - act now and get your money back!!

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Writing a bank charges letter

The banks have finanlly agreed that some bank charges are unfair.

1. Work out what you think you are owed

2. Write and ask for the money back

3. See what the bank has to say

4. What next?

Reclaim Unfair Bank Charges Menu

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