Why Can Claim Back Bank Charges Article

	1888 Articles Home \| Legal Articles	Legal RSS
Why Can Claim Back Bank Charges

This article outline the legal factors about why you can now claim back bank charges.

Author: Mike Blackstone

Article Tools:

The reason you can claim back bank charges is very straightforward - it is because it is illegal for them to be charged in the first place. The banks would argue this isn't the case which is the main reason there has been a High Court test case to make a decision once and for all.

The main argument is that the banks should only inflict charges with are in line with their costs, because under the Unfair Terms in Consumer Contract Regulations the charge shouldn't be more than it costs the provider i.e. the provider shouldn't profit from this.

Despite this if you go beyond your overdraft limit, or perhaps a direct debit or cheque bounces you will receive upto a £40 bank charge for even just a pound over! The thing is all the bank has to do is send out a letter which a computer system does for them anyway. A professor of banking has reported that the estimated cost of this is only between £2 and 4.50 and that was not a conservative estimate.

Alltogether this means that bank charges are unlawful and the banks have no right to take your money.

The banks argue the unfair contract terms shouldn't actually apply to bank charges however the Office of Fair Trading didn't agree which is why the case went to court in the first place. It was ruled during April 2008 that these rules should apply to bank charges, fueling the rush to claim back charges that can date up to as far back as 6 years.

Although it is possible to claim charges back directly many people are opting to use a professional claims management service to speed the process up and ensure that the maximum amount is claimed back. At Claim-Back we specialise in this sort of recovery and have an excellent track record.

About Author

Mike is a senior claims manager at www.claimbankcharges.info

Article Source: http://www.1888articles.com