Have you been charged by your Bank for going overdrawn, exceeding your overdraft limit, having a cheque or direct debit returned in the last six years? Has Your Credit Card Company charged you excessively for exceeding your credit limit? It's a horrible feeling at the best of times to be penalized for going over drawn or charged for being sent a computer generated letter.
How is it that any Bank can justify charging £35or even more for going overdrawn or stopping a payment, especially when they have spent millions on the latest technology that is pre-programmed to stop unauthorized payments at the flick of a button? Sounds Unfair doesn't it? More than that it's scandalous ...
Well the Office of Fair Trading (OFT) thinks so also, they arenot convincedthat sending out a letter and charging £35 is a reasonable; they want PROOF from the banks of the true cost to them of why it's justifiable to charge such an extortionate amount.
PROOF that so far has not been forthcoming, why? Well we'll have to ask the Banks and Credit Cards Companies that question, but we can hazard a good guess, there's no way it really costs a bank that much to charge for stopping a payment or sending a letter out.
That's why the OFT wants jurisdiction and transparency over the unscrupulous bank charges debacle ...
In factthe OFT took the banks to court and WON; sending tsunami shock waves through the already deeply troubled banking world.
Up till August 2007 major high street banks had already repaid near on £350 million pounds in excessive charges to cash strapped customers .
Estimates at the moment suggest that £12 is about fair for a bank charge; yet even this is being challenged, so don't let this put you off making a claim.
The Banks, not surprisingly have voiced a tenacious appeal to the High Court ...
the industry waits with baited breath.
At the moment claims forpersonal bank charges are on hold untilthe High Court has made a decision at the earliest, however if you demonstrate Financial Hardship the Bank will have to assess your case before the High Court decision...
if they refuse the Financial Ombudsman will have the power to intervene.
However credit card claims are not subject to this court case and will be assessed immediately; with many cases being settled within a month.
One of the biggest worries people have is their Bank will close their account for making a claim, any such threats should be reported to the OFT immediately, they will take a harsh approach on the Bank and probably face censure by the Financial Services Authority (FSA).
With a deluge of claims expected following the High Court decision, the banks will be inundated, it really is advisable to register your claim as soon as possible and get ahead of the queue.
How to make a claim The two most popular options are 1.
Using a respected, regulated claims handling company.
Charges are typically 25% plus VAT for handling your claim, usually on a "no win no fee" basis which means you don't pay a penny if you don't win compensation.
You'll still be expected to pay anywhere up to £10per account you're claiming for by your bank to send copy statements to your claim handling company.
2.
You can raise a claim directly to the Bank yourself.
If your claim is rejected then you can go the Financial Ombudsman Service (FOS) who will investigate for you.
However it's not without it's complexities.
Both have their own sets of advantages and disadvantages ; if you do it yourself, of course you're saving on cost.
If you're claim is rejected orthe bank accepts your claim; there is a very high probability you might not get back the full amount you are due ...
this is where a claim handling company can be valuable.
Quality claim handling companieswill check any offer, challenging where appropriate.
They also have the advantage of using experienced legal team who are well placed to challenge rejected claims and deal with the potential complexities with cases that are sent on to the Financial Ombudsman Service (FOS).
Recently the UK's Financial Services Authority (FSA) admitted short comings in its regulation of the UK finance industry.
The FSA is now getting tough with those companies who have given clients a bad deal or mis-sold them.
The time has never been better to get your claim registered.
How is it that any Bank can justify charging £35or even more for going overdrawn or stopping a payment, especially when they have spent millions on the latest technology that is pre-programmed to stop unauthorized payments at the flick of a button? Sounds Unfair doesn't it? More than that it's scandalous ...
Well the Office of Fair Trading (OFT) thinks so also, they arenot convincedthat sending out a letter and charging £35 is a reasonable; they want PROOF from the banks of the true cost to them of why it's justifiable to charge such an extortionate amount.
PROOF that so far has not been forthcoming, why? Well we'll have to ask the Banks and Credit Cards Companies that question, but we can hazard a good guess, there's no way it really costs a bank that much to charge for stopping a payment or sending a letter out.
That's why the OFT wants jurisdiction and transparency over the unscrupulous bank charges debacle ...
In factthe OFT took the banks to court and WON; sending tsunami shock waves through the already deeply troubled banking world.
Up till August 2007 major high street banks had already repaid near on £350 million pounds in excessive charges to cash strapped customers .
Estimates at the moment suggest that £12 is about fair for a bank charge; yet even this is being challenged, so don't let this put you off making a claim.
The Banks, not surprisingly have voiced a tenacious appeal to the High Court ...
the industry waits with baited breath.
At the moment claims forpersonal bank charges are on hold untilthe High Court has made a decision at the earliest, however if you demonstrate Financial Hardship the Bank will have to assess your case before the High Court decision...
if they refuse the Financial Ombudsman will have the power to intervene.
However credit card claims are not subject to this court case and will be assessed immediately; with many cases being settled within a month.
One of the biggest worries people have is their Bank will close their account for making a claim, any such threats should be reported to the OFT immediately, they will take a harsh approach on the Bank and probably face censure by the Financial Services Authority (FSA).
With a deluge of claims expected following the High Court decision, the banks will be inundated, it really is advisable to register your claim as soon as possible and get ahead of the queue.
How to make a claim The two most popular options are 1.
Using a respected, regulated claims handling company.
Charges are typically 25% plus VAT for handling your claim, usually on a "no win no fee" basis which means you don't pay a penny if you don't win compensation.
You'll still be expected to pay anywhere up to £10per account you're claiming for by your bank to send copy statements to your claim handling company.
2.
You can raise a claim directly to the Bank yourself.
If your claim is rejected then you can go the Financial Ombudsman Service (FOS) who will investigate for you.
However it's not without it's complexities.
Both have their own sets of advantages and disadvantages ; if you do it yourself, of course you're saving on cost.
If you're claim is rejected orthe bank accepts your claim; there is a very high probability you might not get back the full amount you are due ...
this is where a claim handling company can be valuable.
Quality claim handling companieswill check any offer, challenging where appropriate.
They also have the advantage of using experienced legal team who are well placed to challenge rejected claims and deal with the potential complexities with cases that are sent on to the Financial Ombudsman Service (FOS).
Recently the UK's Financial Services Authority (FSA) admitted short comings in its regulation of the UK finance industry.
The FSA is now getting tough with those companies who have given clients a bad deal or mis-sold them.
The time has never been better to get your claim registered.
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