If you, being a bank customer exceed your overdraft limit or a cheque bounces, you are in breach of contract because you signed the conditions stating that you’d stay within the official limit and this the time where your bank charges come up. The bank should really claim only the amount no matter what actual losses they have suffered just for this exceeding overdraft limit or bounced cheques. However, unfair bank charges have been discovered by a wide range of individuals.
The banks could possibly charge you additional interest on the additional borrowing or perhaps a very small amount for the cost of the automated letter and stamp. If this is the scenario, bank charges should only be 2.5 pounds and not 20 to 50 pounds. This signifies that bank charges over the actual losses of the banks are penalties or fines and are simply unfair and never lawful because of the provisions of the Unfair Contract Terms Act 1977.
If ever the bank charges are penalties and not direct losses, then the Court might probably realize that they’re unfair contract terms, which the Judge would simply not allow. Banks have been freely criticized for misleading their customers when it comes to bank charges problems. Their decisions usually are not binding on any Court and were based on technicalities and this is the reason why the banks still want to keep the bank charges cases out of court.
However, the law on bank charges is on the customer’s side. However, knowing the banks, they are unlikely to simply pay back huge amounts of pounds to their clients without forcing these to do so. This means that a lot of claiming companies for compensation are providing their help to the bank customers. They want to claim back your money you paid for the bank charges on your behalf. All you need to do is always to provide a specialist solicitor in claiming bank charges the correct records, documents or evidences. Your solicitor will likely then measure the value of your claim which will also include statutory interest. The solicitor will even communicate with your bank or their solicitor and negotiate the highest possible amount that one could claim. As soon as your bank made its offer, your solicitor will assess the reasonableness of their offer and can chase your cheque after the dispute is resolved.
In the event the bank does not settle your claim, then this solicitor will recommend your case towards the Financial Ombudsman Service and will manage the process of your bank charges claim for compensation. Your solicitor will surely talk about all the options at every stage of the case and can give you and advise you their firm suggestions about your bank charges issue.
