how do i go about claiming back charges the bank give me for going overdrawn?

Question

i dont even know if its ture but some one said that you can naw claim back charges the bank put on your account for returned diret debets and going over your overdraft limit is it ture how do you do it if it matters i am with llyods tsb

Answer 1

Yes, its true and hundreds of thousands of people are doing it. You can claim back any penalty charges from the bank, ie charges for breaking the terms and conditions of your contract with the bank, such as:

Going over your overdraft limit
Bounced Direct Debit
Bounced Cheque
Card Misuse Fee

They are illegal because most banks charge a minimum of £20, usually more. Under the "Unfair Terms in Contracts Regulations" it states that the penalty charges can only be the same as the administrative cost, and not to be used to make a profit. It costs the bank hardly anything if you go overdrawn as the letter and charge is generated automatically by the banks computer, the cost to the bank is no more than £4 at the very most (being generous!).

So you can claim back these charges, for the last 6 years. The steps are:

1) Get a copy of your charges for the last 6 years (using a Subject Access Request under the Data Protection Act).

2) Find out from your statements which charges you can legally claim for

3) Write to the bank asking them to refund your charges

4) Write the bank a "Letter before Action", giving them one last chance to give you your charges back before you take them to the small claims court.

5) File a claim in the small claims court (if charges total less than £5000)

Obviously, you only get to step 5 if the bank don't make you an offer you are happy with. If you go all the way, you can claim back 100% of your charges.

There are full details of each step, along with sample letters at the site below.

Answer 2

It is true. The courts have decided that these charges are extortion because the bank charges you much more for becoming overdrawn then it costs them. For example if you exceed your limit they will charge arouund £40 where all they have to do is send you a letter which costs them pence.

If you go to www.moneysavingexpert.com and click on the link to reclaimimg bank charges this will give you all the information you need including the letters you will need to send off to your bank. Once you print these letters and send them to your bank they will send you a copy of all the charges you have had and you can try to reclaim them. So far no banks have taken a claim to court and have simply paid out but be prepared as the bank may close your account! Hope that helps and you get lots of money back!

Answer 3

Its all to do with the ridiculous interest rates they charge you when you go over your limit. its seen as an illegal means of charge and disproportionate to the real cost of the situation.

Its only recently that its been in the press but people including myself have been doing this forever.

I went over my overdraft limit by £1.50 and ended up with an £86 charge for just a week. This ridiculous amount of interest is inhumane and I went to the bank and stated that I didn't realise I was so little over and they simply said its not a problem, re credited me and said be careful next time.

Simple as...! just don't go round flaunting you got £3000 back or something, just be reasonable on the situation.

Answer 4

hi,
i'm currently claiming back from alliance and leicester and abbey and i would strongly recommend its done. they always end up giving it back because they know they cannot go to court stating that charging £25-40 for what cost them a mare few quid is legitimate. the law is on our side... at least for now so grab it back while you can

firstly if like many you dont have you statements for the last 6 years you must request them or a list off all the charges incurred over this time and include a £10 fee (the max they can charge) for them doing so. they have 40 days in which to reply to you if not you should follow up with a phone call and report them to the Information Commissioner.

once you've sent it off they will send you either all you statements for the last 6 yrs or a list. compile all the charges and total them. write to them again with the details of the total. you can also include any interest charged whilst you were in unauthorised overdraft. and interest for oportunity costs which is 8% from the day of your first charge. however they are not entitled to give you this additional 8% unless it actually gets to court. all this does is gives them a bit of incentive to pay up instead of getting into court because once there you can add interest compensation for stress and your legal costs to the bill, but it should all be stated in the letters.

once thats done they may write to you trying to convince you the charges are legal, DONT BUY IT. or they may offer you a partial settlement. its up to you to accept this if you feel its satisfactory. or you could accept letting them know that you'd expect the rest in the near future. however most strongly recommend you go for all.

if they dont want to pay up file a judgement against them in the small claims court and if necessary call in the bailiffs

they SHOULD NOT close you account but may try to. the Financial Ombudsmen has ruled against them doing so, so if they do you're allowed to report them and could be entitled to further compensation. however they may put you down on their systems as a difficult customer and they may not make things too sweet afterwards

from what i've read most cases are dealt with in 2 months but i'm sure some are done quicker, then again banks may want to hold on to the money for as long as they can to earn interest.

what most important to remember is if you do get to court you should be properly prepared as ill preparation could cost you to lose. although very few banks send someone to defend them resulting in your immediate victory.

what you should always remember is they will try to convince you they are legal charges, like Alliance and Leicester is trying to do to me now. But press ahead like a charging bull because the masses who've been re-imbursed cant all be wrong.

try the sites below for (excellent) help. they provide templates have a forum and lots more

good luck

Answer 5

I know its vague but really depends on your bank. My wife sent one letter to her bank (Abbey) and after a few weeks they offered her £300.00 to cover the charges. Other banks will take longer. Start by writing a letter stating you are complaining as the charges they have implied are unreasonable considering the administration they have actually undertaken and state also the you have been financially disadvantaged because of this.

Hope this helps.

Answer 6

Thousands of people are doing it.

they are claiming through the small claims court.
the banks are SCARED to fight the cases, because they know the bank charges are totally unjustifiale, and they do not want to set a precedent by losing a court case.

have a look at how to do it here, complete with standard form letters:
http://www.moneysavingexpert.com/bankcharges

Answer 7

that's how i exploit my taking part in cards and that i under no circumstances get overdrawn. I easily have Barclay account it fairly is my substantial account charges,artwork, blah blah national in basic terms use for Emergency so I shop approximately £200.00 in there. Loylds for procuring and stuff.

Answer 8

I have drafted an letter in a previous question too long to do a again, check it out got a mate over two grand back.