How To Reclaim Your Bank Charges

There have been many stories in the press recently about individuals claiming back their bank charges. This followed a ruling by the high court that the charges made by the banks were excessively more than the costs incurred by the bank and thus illegal.

Since these bank charges are deemed too high and unlawful by the high court, the customer is entitled to the value of the charge back. So each time you went over drawn past your over draft limit, or bounced a direct debit or standing order the bank would have charged you anywhere from £15 up to nearly £40. It is these charges that you are entitled to claim back from the bank.

People in the UK have successfully claimed back anywhere from £100 right up to one lady who successfully claimed back nearly £20,000. The stipulation of the ruling is that you can only claim back charges for a period no longer than the last 6 years.

Claiming Back Your Bank Charges

The procedure for claiming these charges is simple:

First you need to establish exactly what you are owed by your bank in charges for the last 6 years. You can do this by writing a letter to your bank asking them for details of all the charges that have been applied to your bank account in the last 6 years. You can also make a request to your bank for all your statements for the past 6 years. They can charge your for your bank statements and there is no limit to how much they can charge.

You can however make a request for the details for all the charges that have been applied to your account. They can only charge you £10 for this information as this request comes under the data protection act. It is advisable to get details of the charges first and then request the statements if the charges amount to a high figure.

Once you receive the statements you need to go through and highlight all the charges, it is best to list them with the amount, date and page number of the statement where the charge appears. Put all these charges on a spread sheet, as you will need to send this information to your bank.

Once you have calculated what the bank owes you in charges, you can then write the second letter which notifies them of your intention to claim back these charges.

What should I do if the bank refuses to pay back the charges?

Although the banks are legally required to return these charges back to you, it does not mean to say that they will just roll over and write you a cheque. Most people who go through this process of claiming back bank charges get back a large percentage of what they are owed by the bank.

The bank usually makes an out of court settlement or good will gesture. You are quite within your rights to expect 100% of the charges back with interest but you may have to submit a claim in the small claims court.

This may be a lengthy and time consuming process. It is worth the time and effort if the amount in question is significant.

If you wish to pursue the bank through the small claims court then it is strongly advisable to seek legal advice before and during your claim.

The Easy Option

There is an easier option available, if you don't have the time or knowledge to do the above.

You can hire companies that specialise in reclaiming bank charges. These companies have a lot of experience in claiming back bank charges, they have gone through the procedure many time and know the best way to get back the bank charges.

These companies usually send out packages on request. You may have to pay a small fee to get the process started, they will provide you with templates of letters that you have to send to your bank. They will provide you with guidance in every stage of your claim.

These companies usually charge you a percentage of the total money that you get back from your bank in charges.

If you have incurred a lot of bank charges in the past 6 years, this could be a large sum of money.