Bank Charges Information Library

BANK CHARGES

Find information on claiming back bank charges below.

Reclaiming Bank Charges

Over the last few years, thousands of people have taken action against their banks.

After having put up with unfair charges of up to £35 each time an overdraft is breached or cheque bounces for a long while, gradually ever more people decided enough was enough and sought a way to claim back those fees.

Free template letters on how to claim back the charges were circulated and soon there were so many complaints and claims in circulation and going to local courts that the Office of Fair Trading had to step in.

While it was possible to take action alone, many people sought guidance and professional help from expert claims services. The process was pretty simple: threatening to take the bank to court or to the Financial Ombudsman Service (FOS) was enough to get up to six years of charges back.

The Supreme Court Steps In

By 2007, there were so many cases of bank charges claims that the system was unable to deal with them all. Around £1 billion had already been returned to customers and the banks decided that it was high time a 'test case' was carried out.

So, courts stepped in and banks carried out the test case against the OFT. This was designed to prove whether or not bank charges could be ruled legally unfair.

Meanwhile, all cases were frozen until the case was closed. At first, it seemed as though banks were losing with the first two courts (High Court and Court of Appeal) ruling against them.

Banks Win

However, the Supreme Court ruled that rules on fairness couldn't be applied – so the bank won. That was in November 2011. Not long afterwards, the OFT decided to drop its official investigations, although they vowed to continue to look into the matter.

Can you Still Claim?

The Supreme Court's decision was a great shock and blow the millions of customers who had sought compensation. It seemed as though all cases would now be shelved and the matter closed.

However, there are growing reports that customers are still being able to win successfully against banks and are getting their money back.

In fact, if you can prove you're officially suffering financial hardship, the Financial Ombudsman Service might still be able to look into your case.

You can still go to court with your case, but there are no guarantees that you will win.

Can I Claim on my Own?

Sure you can – you could simply download a template complaint letter and attempt to make a claim that way. However, using a professional service is certainly less hassle and easier as you have an expert on your side who knows how to deal with courts and legal cases.

If you would prefer to make your claim alone, make sure you find out as much as possible about the process and how it works. Start finding your bank statements and get organised – you'll need to be prepared.

What are the Risks?

By simply carrying out the first part of claiming, you are relatively low on risk. However, if your case does go to court you do risk that it could cost a lot in legal fees. Find out as much as you can about which costs could affect you.

If you decide to use a professional company, make sure they are clear on what is really possible. Remember, there is no guarantee that your case will win – especially as it has now become officially harder to do so.

If you are experiencing problems with your financial situation, consider seeking independent financial advice.