UK Banks Overcharging Clients

There has been a lot of news coverage highlighting the "underhand methods" UK Banks are using to discourage customers from claiming back fees. They are fighting hard to regain billions in lost income over the last few years.

Consumer watchdog Which? reported that banks were gouging consumers, charging fees for closing accounts, delaying statements, adding admin charges, and releasing customer details to debt collection agencies.

The survey found that one in four UK adults have were charged a £30 overdraft fee. Which? Claims that "slipping into unauthorized overdraft is more often than not a genuine mistake".

Personal finance campaigner at Which? Doug Taylor said:
"In an attempt to avoid paying consumers what they are due, we have found that banks are employing increasingly underhand methods to avoid their responsibility to treat their customers fairly and refund the charges."

However, the British Bankers' Association (BBA) has accused the report as "headline-grabbing" and "sensationalist". They believe they have the right to charge fees for any service they offer. That is why they continue to charge high charges on overdrafts even thought the practice has been deemed illegal.

The BBA argues: "It is entirely reasonable for a bank to close the account of a customer where it is clear that the relationship between the customer and the bank has broken down."
The Financial Services Authority (FSA) has stepped in and worked to put a stop to illegal banking practices and unfair fees. But, there are still hundreds of thousands of UK consumers who do not know how to get their money back.

How to Get a Refund

The first step to getting a refund is to contact a company such as Easy Claims . Millions of people have received a refund already. Most of those used a service to help them navigate the process without delay or being threatened by the banks.

On 27th June 2007, the main high street banks agreed to face the Office of Fair Trading at a test case to determine the fairness or otherwise of default charges. The Financial Services Authority agreed that in the meantime the banks could put all cases on hold. In our opinion this is a travesty and more in the interest of the banks rather than the customer.

However, many people are using services such as Easy Claims to take their case to court. This ‘security’ will help people tackle the banks without fear. As time goes on, and people win their cases against the banks, their cases will grow stronger. The banks are being forced to return as much as 6 years worth of bank charges.