Courts To Decide The Legality Of Punitive Bank Charges

Jan 30 at 9:09am by Personal Finance Claims

Over the years, thousands of cases have been filed against banks in UK for overcharging, but customers are still finding it difficult to get rightful justice. The problem it seems is with the archaic banking rules and regulations that are quite ambiguous, especially when it comes to defining the legality of punitive bank charges. Since, the existing banking related laws are quite lax, banks and other lending institutions are easily able to find an excuse for overcharging customers and get a decision in their favour. This is why nothing much has changed over the years. Banks are still overcharging customers even when cases are continually piling up in courts all across the country.

Victims of bank overcharging however need not lose all hopes because although slow, things have certainly started moving in the right direction. You may not be aware, but the latest news is that courts have finally agreed to allow a case that seeks to determine whether or not consumers can pursue overcharging claims against banks. The best thing about the whole event is that the case is being pursued by none other than the Office of Fair Trading (OFT). Had the case been filed by an individual, not much could have been said about its outcome, but since the OFT has the necessary resources and talent, victims can at least expect a favourable outcome this time around.

The case currently being fought by OFT is against seven prominent banks and a building society. Since it mainly concerns unauthorised borrowing fees, it may not be directly related to bank overcharging, but since a favourable decision in this case will certainly act as a guiding light and set the tone for other pending and future litigations, most victims are avidly waiting for the court’s final verdict. If the court decides in favour of consumers in this case, the OFT will then file a second case that directly relates to bank overcharging. OFT officials say that the basic plan is to prove that common bank charges such as those arising from bounced cheques, overdraft, late payments etc, are way more than the actual costs. The purpose is to seek a favourable judgment that would put a limit on the fees and penalties that are generally charged by banks at their own discretion.

The final verdict may take some time, but you need not get anxious because verdict or no verdict, you can still pursue your claims with your bank. The OFT has set some limits and if your bank is exceeding these limits, you have every right to make a claim and get your money back. So, I would recommend that you file your claims right away and do not necessarily wait for the courts to decide in favour of customers.

Don’t miss a single tip! Subscribe to Personal Finance Claims

Technorati Tags:
bank charges, claims, claim back money