Bank penalty charges have been well publicised and are potentially unlawful charges levied on bank clients. There has been a tremendous amount of resentment concerning these charges, which range from excess fees through to returned cheque fees and unauthorised borrowing interest.
According to research one in three people with a bank account overdraft facility end up paying an extra £100 a year in unfair penalty charges.
They are charged around £25 up to four times a year because they exceed their agreed overdraft limit on their current account. Some banks then scandalously charge up to £35 for each transaction after a customer goes into the red.
Research shows that many people simply lose track of how much money they have in their account. A report commissioned by the online bank Egg found that the majority of account holders ‘have an extremely poor understanding of the financial status of their current account’. The report found that more than 60% do not know how much money is in their account at any one time. With a raft of direct debits going out at different times of the month, many people understandably slip beyond their overdraft limit without even realising.
The majority of people just simply forget about direct debits and/or pending cheques etc, but no matter how genuine the account holders excuse, the banks and building societies continue to add penalty charges to their loyal customers’ accounts. The resulting charges reap the financial institutions approximately £3 to £5 billion each year by way of penalty charges.
Banks have taken considerable abuse in the media following the publicity surrounding this matter, and perhaps with just cause. If the banks and building societies seriously believe these penalty charges to be fair and legal then why are they agreeing, following our involvement to refund these charges if they are correctly taken and are legally binding?
We can help you recover your bank charges over the last six years (five years in Scotland). If you are unsure exactly how many charges you have paid, we can find out at no cost to you.
Morton Lloyd & Co Ltd will: Contact your bank to obtain a refund of your penalty charges, recover your bank charge information if you do not have it available, negotiate on your behalf throughout the claims process until finalised. In the unlikely event where we cannot get the complaint upheld, we will refer your complaint to the Financial Ombudsman Service (FOS).
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