Tactics For Reclaiming Bank Charges

There are mountains of anecdotal evidence that people who push for a full refund of their unfair charges, and accept nothing less, have been successful. However, it's clear that many companies are trying all sorts of tricks to put people off, with a lot of success. Here are some of the nastier ones to beware of, and what you can do about them.

Delaying tactics

Some banks and card companies are trying to charge £2 to £5 per statement. Statements aren't covered by the Data Protection Act, but charges and transactions are. Under the Data Protection Act, they can charge no more than £10 for the information you request.

If this has happened to you, write to them again, enclosing a cheque for £10 and making it clear that you request the information on past charges (not past statements) under the Data Protection Act 1998.

Address your letter to the Data Controller and send it recorded delivery to the address the company has registered with the Data Protection Commissioner. You can search for it here. If they don't comply, complain to the Information Commissioner.

Some banks claim that they don't store old charges information in a filing system that's 'relevant' to the Data Protection Act, so they don't have to give you details under the Act. I've found an excellent response letter to this delaying tactic on the Consumer Action Group website.

Negotiating (bullying) tactics

The first tactic of many of these companies has been to respond with an intimidating letter denying the charges are unlawful. When a claimant persists, the company tends to recommend a fifty-fifty settlement. However, claimants who then insist on full settlement have so far received exactly that. Sometimes this has meant getting a court judgment to do it. I shall write more about this very simple process in a later article.

Punishment

Some banks have started closing the accounts of customers that have taken their claims to court. A typical scenario is these three things happen: they refund the charges, they deny the charges are unlawful and they write to advise that the account will be closed.

That they refund the charges is great. That they simultaneously deny that the charges are unlawful is ludicrous. And, frankly, I see closing the account as a positive thing. Most people never change their bank account, which means they get a terrible deal in terms of the credit interest on a positive balance and the debt interest on overdrafts. Banks don't reward loyalty.

You might want to open another account in advance, so that you're ready to move your direct debits across immediately.

> Read The Ultimate Guide To Reclaiming Bank And Card Charges.

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