bank charges the real deal ?

Question

I was told this evening that it is illegal for banks to charge you for anything until they have sent you three letters ?????

Also they are not allowed to charge you £35 the most they can charge is about £4.50 .

Do you know the real deal about this and the real legal info and also does anyone know what website this is on.

cheers people and happy xmas and a great charge free new year

terms and consitions at this stage are not relevant as I dont have them to hand . But if its illegal to charge without three letters etc and we dont know about it then they just get away with it till we pull them on it

Answer 1

i sent the following letter to my bank two weeks ago, and got 744 back, the full amount:

The Branch Manager
HBOS
Byres Rod
Glasgow


ILLEGAL PENALTY CHARGES

To whom it may concern,

I am writing with regard to my now closed Halifax credit card account. The roll number with which this account was associated is xxxxx and the card number ended with xxxx. This card still shows on my internet banking homepage. My previous address, and the one I resided at when I held the credit card account, is xxxxxxxxxxxxxx. Before that it was xxxxxxxxxxxxxxxxxx
The purpose of this letter is to advise Halifax that I require you to refund all penalty charges which you applied to that account since it as opened. This includes all late payment charges, over-limit charges and any other default charged that were applied to this account. I do not have details of the exact figures, and although I have requested them from you under the terms of the Data Protection Act, they have not been forthcoming.

As I am sure you are well aware, these charges are illegal. On 5th April, the Office of Fair Trading ruled that default charges over £12 are automatically presumed to be unfair in terms of the Unfair Terms in Consumer Contract Regulations, and as such are not legally enforceable. All the charges that you have applied to my account are over this amount.

These charges represent a penalty, or a fine, and as such are irrecoverable under common law. In the case of Dunlop Pneumatic Tyre Co. v New Garage and Motor Company 1915, it was held that a contractual party can only recover actual or liquidated damages for a breach of contract. As such, these charges are illegal.

The charges that have been applied to my account, and that Halifax has taken from me represent nothing more than a penalty, and a lucrative profit making scheme for the bank. There is parliamentary evidence for this assertion; UK banks have recently given evidence to the House of Commons Treasury Committee on how bank charges are calculated: "The costs are going to pay for all the people we have who pursue debt, collect debt, speak to customers and chase payments. The way these charges are arrived at is by taking these total costs and making some assumptions about the volume that is going to come through to arrive at the individual charges"

Accordingly, the charges applied to my account are not a reasonable pre-estimate of the bank’s loss in relation to my account. Your charges would appear to represent a device to recover global losses (for example, loan defaulters, bad debt write off, including commercial lending in, and outwith, the UK).

I would suggest that it costs no more than one pound to advise me that I have gone over my credit limit, or that my payment is late. If you wish to dispute this amount, and provide me with your exact costs, I am more than happy to consider what you allege your true costs are.

I require you to either refund all of these charges, and any interest which you have charged on them within five working days, otherwise I will issue a claim against Halifax Credit Cards at the small claims court. Be aware that in addition to the charges and the interest you have charged on them, the small claims court will also award me 8% statutory interest per year, and the £30 MoneyClaim online fee.

Please do not make me an offer lower than the total amount of charges and interest that you have taken, as I will not accept it. I am prepared to go to court and fight my case should I have to. In the event that you refuse to refund the charges (and interest on them) that Halifax has taken from me, I will require whomever I call from HBOS’s board to lodge details of exactly how much it costs the bank to advise customers that they have gone over their credit limit, or that their payment is late. In your response to this letter, you may refuse and cite commercial sensitivity, but as I am sure you aware, you will be unable to do so in court. If you are unwilling to refuse ALL penalty charges that you have applied to my account, please advise me in writing, so that I am able to show the court that I have considered alternative methods of resolving this dispute. Further, should I go to court, my victory will then be used as precedent by others in my position.

If I have not received a full refund with five working days I will issue legal proceedings without further notice. Please be aware that I have taken legal advice on this matter, and that this is not an empty threat. Despite the fact that Halifax has thus far not provided me with the full details of the amount as requested, I shall make an estimation of what I believe the total amount to be, and the specifics can be decided before a judge.



Yours sincerely





although this letter refers more to credit card charges, the same applies to bank charges. so far only one case has gone to court, against abbey, and they did not defend it. the banks will not go to court as they are afraid of the precedent being set. also, they would have to tell us how much it actually costs them to tell us we have gone over our limits, which they do not want to do

Answer 2

Ignore the previous answers - you are right. The law states that a bank has no right to impose any penalty on you for a bounced cheque, direct debit that can't clear, going into the red etc.

Banks can only claim legitimite costs and that's always less than £5 per transaction.

Look at this site and register as a member. It's 100% free and will help anyone get back all bank charges for the last 6 years:

http://www.penaltychargesforum.co.uk

Now, go get that cash back - it's yours!!

Answer 3

I've heard of people getting quite a bit back so it does work, but open a new account with another bank before doing it!!! good luck!

Answer 4

They can charge you whatever!! you agreed to their terms and conditions when you opened the account!! Although you can get in touch with them and speak direct!

Answer 5

Living human kind living in misery.
With modern cyber highway men in planet of apes.

Answer 6

they can charge you whatever they want as long as it was in the terms and conditions of the account when you signed up for it, and im guessing.... if you look back it will be