Get some money back from your bank

Discussion in 'Off-Topic Chat' started by tubafran, Dec 14, 2006.

  1. tubafran

    tubafran Active Member

    I know there are quite a few students on here - did anyone see the Money Programme special on Monday night where they featured the fact that you can recover from your bank "over charges" for going in to the red.

    If over the last 6 years you've had a charge for going overdrawn, say £30, then other charges for cancelled direct debits and returned cheques - then unless the bank can show that their charges are reasonable (which todate they haven't and possibly can't) then you can ask for it back.

    He's the link to the BBC article and they give you all the letters to send and show you how to work out the charges and interest that you are owed.

    Good luck.
  2. mjwarman

    mjwarman Member

    I hope nobody from my bank reads this and put 2 + 2 together (and gets 5!) but I put in a claim about 3 months ago to reclaim almost £1000 of charges back from my bank. I have had a letter back asking me to prove these charges in the form of a letter with all charges stated, including date, amount and description...... Now am I being stupid, but don't the bank have copies of all our statements? They are just being lazy!!

    Anyway, I replied and now that this news has hit, I hope to get a positive reply back soonest!!!

    I think anyone that used to be a student should do this! What have you got to loose (apart from your bank account, there have been reports that even though the banks are refunding the money, they are also closing the bank accounts down!! Make sure you have a back up!)
  3. Bryan_sop

    Bryan_sop Active Member

    I'm in the process of doing this myself! The bbc link ^^ is very useful and the guy who started all of this has a useful site too, seems a lot of people are doing it so I thought it's got to be worth a try! Screw the banks rather than them screwing us for a change!!

    Can you guess that I'm an ex student too?!?!
  4. Craigsav83

    Craigsav83 Active Member

    Very interesting indeed! I can remember last January while I was waiting on my student loan coming in, where I was charged almost £200 in a matter of a few days for returned direct debits. I've always wondered how they could ever justify these charges!

    Interesting if they start closing accounts. . . does this mean they will cancel my overdraft?? :clap:
  5. brassneck

    brassneck Active Member

    Banks can cancel overdrafts whenever they want. One thing that bank authorities argue is that customers are obliged to look after their own finances in such a way that they account is kept in credit unless using an authorised overdraft facility. Overdrafts are there to be used as a buffer for unexpected expenses. Students usually benefit with overdraft facilities that are interest free and can carry on during their graduate year to help pay off any due monies. Although the charges may seem disproportionate, think about the services that are provided free of charge ... ranging from free debit cards and ATMs, organising and payment of bills & regular funds transfers, statement issue, free advice etc. etc. If banks had to not charge for defaulters, they would start charging for such services. Accounts would get closed more often and companies would have to provide more staff to collect payments from customers. Just another way of looking at things :-?
  6. Craigsav83

    Craigsav83 Active Member

    I've never been a fan of having an overdraft as a student, I had to take mine out to pay a deposit on a flat, or it would have been impossible to stay in Edinburgh. The banks (IMHO) are to blame by offering what many students see as free money, one bank even offers an overdraft of £2750 in the students first year, which is ridiculous!

    As for the other services, debit cards, payment of bills etc, these should never be charged for, same with ATM's these bands make profits of billions of pounds each year, all by encouraging people to get into debt, whether it be mortgages, loans or credit cards, and this is probably where the bulk of the profits come from.

    I honestly can't believe how they can justify a £38 charge on returns of direct debits or cheques, and the more people that claim, the better!

    Sorry if that sounds a bit p*ickly, but i have just been looking through the last 5 years of bank statements.... :-?
  7. brassneck

    brassneck Active Member

    I think banks get charged for items such as direct debits that are returned unpaid (not 100% sure on this though). I'm not trying to defend the banks for the amount they charge but most clearing systems are automatically controlled and depend on customers having funds in accounts to pay for items agreed with any company. If banks decided to pay companies and allow unauthorised overdrafts, even a small amount spread over hundreds of thousands of people adds up to a lot of money (e.g., £5 for 100,000 customers equals £0.5M). Nothing would deter customers from ignoring a payment or two if they know bills are going to be paid without charge. It's a tough life!
  8. Craigsav83

    Craigsav83 Active Member

    Yeah, thats fair enough, but students are the most vulnerable customers. With exception of council tax, students still have a similar array of bills to a tenent, with only a fraction of the income.

    Perhaps this would be different if students were better supported from the Government? :confused:
  9. brassneck

    brassneck Active Member

    - that's why, in a certain way, I was glad I was the last of the student population in 1983 that was grant supported. I detested the thought of student loans and marched in the street with thousands of other students protesting against them.
  10. Bayerd

    Bayerd Active Member

    Problem with banks though, is that they say they want you to run your account within limits, but the reality is that they like nothing better that people who regularly go over their limits as it adds to their profits. I used to work in a bank, the work required to return items unpaid is minimal. In a large city centre branch it takes one employee approximately 30 minutes each morning to process the unpaids, as it mostly involves pushing a couple of buttons to reverse the transaction. All banks are really interested in is getting you to take as many products with them as possible, overdraft first, then credit card, then put your balance onto a loan 'because it'll be cheaper and more organised' then get a mortgage, put your loan onto your mortgage to reduce your payments etc. The more products you have with one institution, the harder it is to walk away because of the hassle of changing everything, ecept you wouldn't want to go anywhere else as they're all as bad as one another.

    Rant over.
  11. davidquinlan

    davidquinlan Member

  12. tubafran

    tubafran Active Member

    Not to mention all the insurance covers they'll try to sell you in the event of redundancy, disability, ill health which will at least mean the bank still get their payments for your mortgage and loans.

    Lets think? In the last 20 years we've had the endowment crisis and the reduction in pension returns - all managed by those everso knowledgeable people in the city. All the money was invested in shares, the market collapses so they then take whats left and put it in something more secure - meanwhile the share markets zooms up but as your money is no longer in the share market all these products have a **** return.

    and to cap it all this Christmas will probably see the biggest amount of "bonus" paid to share dealers due to the rising market. More Bolly anyone?
  13. Hmm- which band is this, and how do I get a piece of the billion pound wedge!?! ;)
  14. Bungle

    Bungle Member

    I watched the program. Most of the banks paid because it was cheaper than being taken to court. Some banks were still reluctant to pay money back and had to be taken to court which involved a £250 up front cost, but then paid up out of court.

    I wonder if you could claim in the same way for a mortgage termination charge? I am getting charged £275 for moving my mortgage and for doing what?
  15. tubafran

    tubafran Active Member

    I think one of the reasons the banks are settling before it gets to a court hearing is that if they lose it could set a precedent that gives all the banks a headache. I think they'd much rather deal with each case as it arises - bear in mind a majority of people won't do anything about it. If a precedent was set that they'd taken money off people and they shouldn't have they'd probably end up having to send it all back whether you take them to court or not.

    The last stance by their Association was that these were "service" charges and not penalties so they are entilted to do it - however they have yet to put that argument in a court case.
  16. brassneck

    brassneck Active Member

    I wonder if it would set a precedent not only for banks, but for all organisations that opt to charge customers for defaulting? I found out that the UK is about the only country that banks (generally) do not charge customers for having accounts. HSBC and Cahoot have recently started charging customers because of the amount of debts that have had to be written off! So, with all this concern over default charges it might lead to monthly service fees.
  17. robcornet

    robcornet Member

    I have claimed all my charges back using a website called and they have all the info on the site to help people claim their charges back and they also have letters to send to your bank etc. Take a look it's well worth it, I am not going to say how much I got back or everyone in my band will expect a drink or 2 next timw we are out.
  18. Craigsav83

    Craigsav83 Active Member

    I (personally) would find it rather odd banks to charge fees for a basic account. i know there are a few out there, and most banks have premium accounts which command a fee, but it just seems odd to charge a fee for something so basic. In fact, if this had to become the norm, wouldn't it be regarded as a tax? As per TV licence? :-?

    It would make very interesting reading finding out where these banks £9bn profits actually came from!
  19. brassneck

    brassneck Active Member

    :-? ...,,1950568,00.html
  20. cornetgirl

    cornetgirl Active Member

    I got a settlement from my bank today (a niftily handy sum may I say!) without having to take them to court, so I'm very happy.

    It really is worth doing as noone seems to have lost out!

    Rach x