Wednesday 15 November 2006

How Much Have the Banks Taken from You?

When trying to work out how much the banks have taken from you in overdraft fees and charges, your first stop might be your bank statements.

You can claim back to 6 years ago. What if you haven't got bank statements going back 6 years, or even 1? Enter the Data Protection Act 1998.

By law, your bank has to provide you with this information within 40 days, should you request it. Unfortunately they can charge up to £10 for the privilege, but many claimants are reporting that the banks are returning their cheques with the data.

You will need to write to your bank. If they do not respond, contact the Information Commissioner to take the matter further.

Illegal Charges Boost Bank Profits

Everytime one of the 28 million people in the UK with an overdraft go over their agreed limit, they are subject to bank charges often in excess of £25.

If there are any direct debits or standing orders due whilst the account in question is over its limit, the customer will be smacked with a further charge, again about £25.

The banks justify this as an administrative charge however the OFT have pointed out that the charges the big banks are handing out aren't a true reflecting of the cost to the banks for handling the default.

Consumer groups are calling these charges illegal and are urging customers to attempt to claim them back from the banks. Many people have tried, and many with success, with payouts of over £1000 common.

The "Reclaim Your Money" guide to Claiming Illegal Bank Charges and Fees is a good place to start if you feel you have been unfairly charged.