In other words, if a cheque bounces or a stop order can not go through because of insufficient funds, is there a limit the banks can charge?
2006-10-08 23:30:43 · 5 answers · asked by scotcyrus 1 in Business & Finance ➔ Personal Finance
Yes - There is now.
After a test case a couple of months back they are only allowed to charge you for the admin caused, They cannot fine you.
This seems to be about £12-£16 based on who you bank with.
If they have charged you more you can demand a refund. Based on other posters on here, they are refunding when challenged.
2006-10-09 00:17:13 · answer #1 · answered by 'Dr Greene' 7 · 3⤊ 0⤋
No there isn't. £12 OFT guideline only seems to apply to credit card companies for some obscure reason.
Welcome to the rip-off world of Banks. With careful manipulation they are able to put you just pennies into the red to justify charging you hundreds of pounds in charges, fees, interest and so called 'referral fees' (which seem to mean shite basically, other than another way to steal an extra fee).
Every time a test case for this comes close to Court they settle to preserve this VERY profitable income stream. The OFT, the Banking Ombudsman service and even the Bank of England, all refuse to take action on this, preferring instead to leave it to the 'little man on the street'. The Banks have unlimited funds to fight a test case and a lucrative 'con' to protect, the ordinary customer has to risk everything to take them to Court and stands little chance of having sufficient backing to win.
So until someone acts on customers behalf's, or until disgruntled customers start taking their over-drafts elsewhere, their Banks will happily continue to take millions of pounds a day in 'unfair charges'.........who's going to stop them?
2006-10-09 12:34:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not a law as such but guidance from the OFT that has resulted in a lot of people reclaiming charges from banks and credit card companies.
See the link below for an article explaining it all in detail
2006-10-09 12:22:48 · answer #3 · answered by CeeVee 3 · 0⤊ 0⤋
Certainly at the moment the banks are refunding if challenged. Having lost one case none of them want to be the bank that gets dragged back and lose the banks even more of their "hard earned" profits.
2006-10-09 01:18:15 · answer #4 · answered by des10euk 2 · 0⤊ 0⤋
banks usually charge £30
2006-10-08 23:38:52 · answer #5 · answered by angelstar 4 · 0⤊ 0⤋