The Legals
If you exceed your overdraft limit, have a failed direct debit or a bounced cheque, you are technically in breach of the contract of your account because you signed the conditions that state you will stay within your authorized limits.
Banks are legally allowed to charge you for breaking your contract, but, they are only allowed to claim back the actual losses they have suffered as a result of your actions they are not allowed to make a profit from the fee.
In April 2006, the OFT branded charges of more than £12 charges as being of a “significantly higher level that is legally fair,” and said that a default charge should “only be used to recover certain limited administration costs”.
It is thought that the costs of dealing with a breach of contract are around £2.50, which means that common charges of £12 for a bounced cheque, and up to £35 for exceeding an overdraft limit are simply unfair and unlawful.
This means that if you have ever been charged an unfair bank fee, that is, an amount that exceeds limited administration costs, you have the right to claim it back.
We work with Claims Financial, a company set up to help people who have been victims of unfair bank charges reclaim their money.
Claims Financial work on a no win no fee basis, and will handle your case from start to finish, so all you have to worry about is what you are going to spend the money on when you get it back!