Step-by-step instructions
Step-by-step instructions
The instructions below are summarised from the instructions provided by CAG so do, please, make sure to read the real thing over there. This article is, as much as anything, intended to make you aware of the possibilities and show you how simple a money-back claim can be.
You are allowed to claim up to four years' worth of bank fees - any older aren't allowable. So the first step is to tally up how much you’ve been fined.
Although you might presume you could walk into your branch and ask for a list of fees, or even four years' worth of statements, you'd be wrong. From my experience - and a lot of other people’s - the bank won't help you.
So what do you do?
If you’re a hoarder and you keep all your bank statements, then you’re in luck. Simply go through the last four years' and tally them up.
If, like me, you can’t find the TV remote in your house and don't keep or properly organise statements, then you'll have to send off the first letter detailed below.
1. The Data Protection act Request (Subject access request letter)
The Consumer Action Group has a great template already written up here. This letter asks for your statements and points out that, under the Data Protection Act, the bank has to supply you with information you are requesting.
Make sure, though, to include a £10 postal order or cheque with this letter. That’s the maximum fee by law that anyone can ask for. It’s worth sending the money straight away as it speeds up the process and stops the bank delaying things by sending another letter requesting it.
Under the Data Protection Act, the Data Controller – the bank - has only 40 days to provide this information.
If it refuses, or does not furnish you with the full information within 40 days, report this to the information commissioner - Information Commissioners Office - for a breach of the Data Protection Act. CAG also has templated letters to force compliance through the courts.
2. The first approach for repayment
Once you have your pile of statements (my bank sent me my entire lifetime’s worth of statements), work through it and tally up how much they've ripped you off for. However, only charges and overdraft interest caused solely by these charges can be reclaimed – not general overdraft interest.
Amazingly, you can claim interest on the money the bank has taken from you – eight per cent from the day of the charge – though that's not reclaimable at this stage, only if you reach the point where it's necessary to make a court claim.
But, if you do use The CAG's spreadsheet template (available in Excel and Works versions), that not only works out how much the bank has taken from you but how much they owe you in interest on that money!
For now, though, all you need from the spreadsheet is the total that's been taken from you. When you have that figure, it’s time to send the first letter.
Again, make life easy for yourself and use the relevant ready-prepared CAG template.
This is tried and tested – and it worked for me, too. However, if for some reason you do want to go to all the trouble of writing your own from scratch, here are a few pointers:
* State your name, address
and account number
* State that you want to claim your bank charges back
* Give them the figure you are claiming
* Point out that you believe these charges are unlawful, and ask them to break down their costs if they disagree
* Use the two paragraphs directly below somewhere in the letter:
* State that you want to claim your bank charges back
* Give them the figure you are claiming
* Point out that you believe these charges are unlawful, and ask them to break down their costs if they disagree
* Use the two paragraphs directly below somewhere in the letter:
“I now
understand that the regime of fees which you have been applying to my
account in relation to direct debit refusals, exceeding overdraft
limits and so forth are unlawful at Common Law, Statute and recent
consumer regulations. If you say that they are not, then will you
please demonstrate this by letting me have a full breakdown of the
costs to which you have been put by as a result of my breaches, in
order to reassure me that your penalties really do reflect your costs.
Additionally, it has now been confirmed that your particularly high level of penalties are considered to be unfair per se by the OFT who reported on the 5th April 2006 and are therefore presumed to be unlawful in the absence of specific proof to the contrary.”
Additionally, it has now been confirmed that your particularly high level of penalties are considered to be unfair per se by the OFT who reported on the 5th April 2006 and are therefore presumed to be unlawful in the absence of specific proof to the contrary.”
Tell the bank that it has 14 days to respond satisfactorily and, if that if it does not, then you will give them one final letter and another 14 day period before you start action. Do make sure to include a breakdown of your charges.
The bank's likely response will be a stiff letter stating that it doesn't believe the charges are unlawful and that you are free to continue your action but should not expect to win.
Ignore that letter and wait 14 days and then go to:
3. The letter before action
It’s time to get heavy with the 'letter before action'. Again there is a great template at CAG.
You can also (if dealing with a credit card account) attempt to get a bad-credit rating removed. I know nothing about this because I've not yet had any need to do it but the template letter has this covered - so delete any such reference if they don't apply and ask for advice on the forums if you're unsure.
It's far easier to use the template but, if you decide to start from scratch, it’s important to state the following:
“I now
understand that the regime of 'fees' which you have been applying to my
account in relation to direct debit refusals, exceeding overdraft
limits and so forth are unlawful at Common Law, Statute and recent
Consumer regulations.
I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.
I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.”
I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.
I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.”
Also state in your letter that the bank has 14 days before you start court action - and do include a breakdown of your charges.
How will the bank respond? Probably with another stiff letter stating that it doesn’t believe the charges are unlawful and also disputing certain parts of your claim’s legality.
Again, ignore it. Wait 14 days and then start the litigation.
It's possible, though, that the bank may send you an offer, a small token gesture. Although some people take this in part payment without prejudicing their claim - by sending a letter accepting it in part and stating they will continue to pursue the rest of the money - I think it makes a better statement of your intentions if you turn down the offer.
And, of course, when you do get you payout, it’s a nicer, bigger cheque!
4. Issuing a court claim
This is the point where things get interesting and you can now also add in that eight per cent interest on the money that the bank has taken from you!
You can fill in a form online via HM Courts Service's Money Claim site or go to your local court and pick up an N1 form. CAG even has a version in PDF format.
There's a small fee for Money Claim but you'll get this back when you win. Some people are exempt from paying these fees, say if on benefits, so always check.
IMPORTANT: Your claim must contain at least the following information:
* Your account number
* Date account was opened
* The date from when your charges began
* That you have already supplied a schedule of charges
* That you will be supplying a further copy
* That the defendant has levied charges and interest
* That the defendants contractual term which allows charges is unfair and contrary to common law
* Total amount claimed
* Section 69 statutory interest statement
* The alternative argument - S.15 Supply of Goods and Services Act 1982
* Costs
The CAG’s template (the one I used) reads like this (items in red need to be filled in):
1. The Claimant has an
account xxxxxx
with the Defendant, opened Month Year 2.
Since Date
the Defendant debited charges and interest in respect of purported
breaches of contract. 3. Defendant is aware of all details as a list of
charges has already been supplied. Another copy will be sent. 4.
Claimant contends: (a) The charges exceed the Defendant's losses caused
by the breaches; (b) The Term permitting the Defendant to levy such
charges is unenforceable under the Unfair Terms in Consumer Contracts
Regulations 1999, Unfair Contract Terms Act 1977 and at Common Law. 5.
Claimant claims: (a) return of the amounts debited of £xxx;
(b) Interest per S.69 County Courts Act 1984 of 8% - £xxx [interest
total at date of claim - Ed] continuing at 8% until
judgment or settlement at a daily rate of £x.xx;
6. Alternatively, if the charges are a fee for a service, then they
must be reasonable under S.15 of the Supply of Goods and Services Act
1982. 7. Costs allowed by the Court.
5. Final stages
The ball is well and truly in the bank’s court now.
It has 14 days to reply - and if it does not reply, you win by 'default'.
The second that the deadline passes, put in an application for a judgement - if you do so before the bank puts in a defence, the money is yours!
If the bank gets in a defence before you apply for the judgment, then it gains the right to proceed into court - a right it certainly won't use, though.
The bank can also:
* Acknowledge the
claim. This buys the bank 14 more days to prepare a defence -
normally a time-wasting procedure; you will be
paid at the end
* Submit a defence. A lot of banks do this. You will be sent an 'allocation questionnaire' to fill in. It’s easy enough and there are instructions on the CAG forums. Fill it in WITHIN seven days, pay the additional fee (if there is one) and make sure you keep a copy. The money’s coming – don’t fret!
* Pay you your money.
* Submit a defence. A lot of banks do this. You will be sent an 'allocation questionnaire' to fill in. It’s easy enough and there are instructions on the CAG forums. Fill it in WITHIN seven days, pay the additional fee (if there is one) and make sure you keep a copy. The money’s coming – don’t fret!
* Pay you your money.
The bank, in theory, may decide to let you take it to court. I’ve not seen/heard of this happening, but don’t worry - you are on solid ground. You'll have already join the CAG, for free, and can ask for help and the advice is free, too.
To make sure things go as smoothly as possible, we'd recommend that you follow the more detailed advice provided by CAG.
Good luck to everyone who follows that guide and joins me and thousands of others in reclaiming what has been taken from them unfairly!
Please note that this advice is given informally and without liability and without prejudice. Seek the advice of an insured qualified professional if you have any doubts.
Thoughts or questions? Post away in this thread in the HEXUS.lifestyle.news forum.
Bob Crabtree
adds - there are numerous links throughout this article
pointing to specific documents or advice threads on The
Consumer Action
Group's forums. To access that information requires you to register
on the CAG's forums. This only takes a minute and the forums
use the same software as we at HEXUS do. And, once you are registered,
you'll be able to ask questions of people who've already successful
done what you're wanting to do.
HEXUS.links
HEXUS.community :: discussion thread about this articleExternal.links
The Consumer Action Group - forum registrationThe Consumer Action Group - step-by-step instructions
The Consumer Action Group - home page
HM Courts Service - Money Claim
Money Saving Expert - Martin Lewis's money-saving site
Which? - Home page
