How-to Guides » OLD GUIDE Reclaim bank charges

Ask for your money back

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At the moment, we're still trying to figure out what the recent Supreme Court decision on bank charges means for lovemoney.com readers.

We'd therefore advise against putting in a new claim until we can investigate further over the next few days.

However, if you're determined to put in a claim at the moment, here's how to do it, to the best of our knowledge:

When you have details of the charges you've incurred since 2001, give your bank a call. Tell them that you did not give them permission to take the charges, then ask for a refund. This sometimes worked in 2006 and 2007, particularly for smaller amounts. We don't know whether the banks will be as co-operative now.

Failing this, you need to write to them to request that they pay you back.

If you've suffered financial hardship as as result of the charges or they've been excessive or unaffordable, be sure to put this in the letter, as you may then have a case with the Financial Ombudsman. There are no guarantees, sadly, but you've got nothing to lose by going through the process.

Here's a template letter:

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Dear Sir/Madam

Account no: (your account number)

Since 2001, you have charged me for (enter what they have charged you for, e.g. exceeding your credit limit).

In the terms of the contract which you agreed to at the time that I opened my account, it is implied that you will conduct yourselves in a manner which complies with UK law.

You did not allow me to have a say in whether or not you, as my bank, should accept transactions that take me beyond my agreed overdraft limit. Therefore I am making a claim under Section Five of the Unfair Terms in Consumer Contracts Regulations 1999. 

As a result, I require full repayment of these charges, which I calculate at £xxxx plus interest of £xxxx. The total is xxxx. I also ask you to remove any default notices on my credit record that are related to these charges. A correction or amendment to the entries is not acceptable.

I have suffered financial hardship as a result of these charges/these charges have been excessive.  [Give details.]

If you do not comply fully within 14 days, I shall begin a claim against you for the full amount, plus interest and costs, plus I shall submit a complaint to the Financial Ombudsman, arguing financial hardship/excessive charges.

Yours faithfully

Xxxx

Be aware that none of this has yet been tested in the courts. There's no harm in sending the letter - in fact, we'd be very interested to hear about the responses you get if you do - but we wouldn't recommend spending any money on a court action at present. We'd suggest you wait and see whether the Office of Fair Trading or the Government decides to take further action against the banks.

We'll keep you posted as and when anything develops.

Again, I'd follow up this letter with a call a few days later.