Dealing with unfair bank charges

You may have read  lots of stories recently in the press about people reclaiming back unfair bank charges from the banks. However, firstly we advise all students to try and go over drawn and secondly before you run in there all gun-ho do research the facts. X-Cel investigates

Well firstly know that the Banks can only impose charges which are in proportion to their costs. Many believe there's no way a £30ish charge, when someone exceeds their overdraft limit or bounces a cheque, is proportionate. The bank however may disagree. It is extremely annoying to know that if your account goes 1p over your authorized limit you will be charged £30. Does it really cost £30 for a computer to write and send an automated letter? The argument put therefore by these recent successful people who demanded their money back was that if it isn't proportionate then it's illegal, and thus you've a right to your money back.

Taking on The Bank!
However, before you get all excited and the nice cheque you might receive from unfair charges do know that taking a bank to court is a very risky drawn out business so only take them on if you are willing and can afford to go all the way.  If you are willing to do just that then follow these simple rules.

Rule 1: Firstly it is important that you set up another bank account as a back up as it is highly likely that the bank will shut down your existing account.

Rule 2: Make sure that you write to the bank first and ask for the money back. The letter should state that your charges were disproportionate to how much you were overdrawn. Also, before making such claims do have an in-depth look at your account..

Rule 3: Threaten to take it to Court. In the very likely case it refuses to repay the cash after Step 2, now write threatening to take it to the small claims court on the internet if it doesn't settle. This is the point when most people get an offer of a refund from the bank; it may not be for all your cash - and you have to decide how far you're willing to go.

Step 4: If all the above steps have failed then I’m afraid you will have to take it to Court. It is quite a scary thought about taking on a bank in court however, many banks do not contest the court cases therefore complainants win by default.
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