Financial Compensation - Bank charges
Many people throughout the UK are becoming more aware of the unnecessary bank charges they are being forced to pay by financial institutions. Perhaps due to the widespread nature of this issue and the increasing pressure on banks to repay their unfair charges, many customers are understandably seeking financial compensation for their poor treatment. If you are seeking financial compensation for unfair bank charges, it is recommended that you seek the advice of a solicitor specialising in this field to provide you with the best possible advice relating to your claim.
Bank charges of this nature are usually made for going over your agreed overdraft limit with your bank. For this reason, many consumers are charged an unusually large administration fee by the bank that is considered both highly unfair and somewhat underhanded by many customers. Luckily however, in 2006 the OFT (or Office of Fair Trading) ruled that these charges were completely unnecessary and disproportionate in terms of the banks excuse of ‘administration costs’. Indeed in many instances, these bank charges have been as much as £35 pounds for as little as going just over the customers approved overdraft limit by even the smallest amount.
Ever since this ruling by the OFT, a great deal of customers who believe they have been treated unfairly have been seeking financial compensation for disproportionate bank charges. This desire has also been recognised by a great deal of solicitors and legal advisors who specialise in this field, who often choose to offer their services on a no win no fee basis to customers who they feel stand a very good chance of making a successful claim.
For many customers who understandably wish to avoid the court route, it may be necessary to bring your claim before the FOS (or Financial Ombudsman Service) who will then be able to take the matter further. Indeed in many instances, simply informing your bank that you will be referring the matter to the FOS after your official complaint has be lodged may be enough to help resolve the matter entirely. The Financial Ombudsman Service is an independent service which has been set up by the government in order to address customer disputes with large financial institutes, and frequently deals with incidents of this nature. However, in order to use this service to deal with unnecessary bank charges, you must ensure that you meet at least one of following requirements:
- You are currently experiencing financial difficulties, or you were when you were dealing with the bank charges. Examples of this will include being unable to pay your bills, you are ill or disabled making it difficult to live properly, you are forced to take out extra credit to meet your living expenses etc.
- The charge is substantially higher than the amount you originally overspent from your overdraft.
- Your bank charges have gradually increased and spiralled out of control until you are completely unable to repay the mounting debt
There are a number of different options available if you are considering seeking financial compensation, if you have been subject to an unnecessary charge of this nature, it is advisable to seek the proper advice as soon as possible.