Reclaim unfair charges and save thousands

Ever been unfairly charged for payment insurance you don't need, or phone minutes you haven't used? Hit with a fine for breaching an overdraft or paying off a credit card late? Or even overcharged on your council tax or energy bills? Here's how to get your money back....

Fancy some extra cash? What a stupid question! Of course you do! And the good news is there may be thousands of pounds of fines and fees that you have shelled out for in the past that you can now reclaim, risk free and for free. Just take a look at this...

Payment protection insurance (PPI)

PPI is a brucey bonus than many companies have been covertly throwing in with loans and credit cards for years, except... it’s not free, so if you don’t need it, you may be eligible for a refund.

PPI is designed to cover loan and card repayments in the event of sickness or unemployment. It’s no bad thing, but if you’ve been secretly flogged it, there’s a good chance you’re paying over the odds and may be entitled to a refund.

If you think you’ve been unknowingly paying for PPI, fill out the Ombudsman questionnaire for PPI mis-sales and post it off to the seller with a letter setting out your grievances. If the seller fobs you off, then write again stating that you’ll make a formal complaint to the Ombudsman if they don’t play ball, and if you still have no luck... do it!

Just be warned, the Ombudsman can only help with complaints about companies regulated by the FSA – if your seller isn’t, then you may have to go to court.

Broadband and mobile

Tiscali and Talk Talk may have come under fire recently for sending out bogus bills, but there’s another broadband and mobile phone billing reclaim that could see you claw back a few pounds.

If you’ve switched broadband, phone or TV providers recently then there’s a chance you may still have unclaimed credit in your account from previous payments or a promotional deal. Some providers (BT, Orange and Post Office) automatically refund any leftover credit, but many don’t (Three, Talk Talk and Sky) – so if you think you have a case, all you have to do is give your old provider a call.

Bank and credit card charges

Now I know what you’re thinking and yes, the Supreme Court ruling in November 2009 did deal bank charge reclaiming a huge blow, but it’s by no means dead. With some charges for breaching overdrafts stretching into the thousands, it’s still definitely worth having a crack at getting your money back.

The best bet is to initially write to the bank setting out your reasons for reclaiming – these will often be that the charges are disproportionate (e.g. you go 50p over your limit and are fined £40) or that you’re going through financial hardship (redundancy, illness etc).

It’s more than likely you’ll get a reply telling you to get lost, but be persistent and don’t be put off – write to the bank again stating that you’re going to take the case to Financial Ombudsman Service. This is a free service setup by Parliament to settle disputes between companies and customers. The worst thing the Ombudsman can do is tell you to get lost as well, so it’s worth a shot if the banks are still not playing ball.

If the Ombudsman doesn’t work, then you’re final option is to go to court – but be warned you’ll need to swat up on the appropriate laws and pay a court fee of up to £100.

Fortunately the Supreme Court ruling does not extend to credit card fees, so you can reclaim for unfair late payment and limit breach fines in same way as with bank charges.

For some more tips on dealing with card providers and advice on the joys of credit purchase protection take a look at don’t be fobbed off by your credit card company.

Council tax rebanding

Since its introduction in the early 90’s, council tax has always been a bit of mess, but then again, rating millions of houses in a short space of time was never going to be easy!

As a result of the haste this rating was done in, thousands of houses were placed in the wrong bands – and if yours is one of them then you could be entitled to a hefty refund backdated to 1993.

The best way to check is to get onto the Valuation Office Agency site (or the SAA in Scotland) and compare your council tax band with that of your neighbour. But it’s worth pointing out that this won’t work if you live in a two bedroom semi and your neighbour is Bill Gates – the properties must be of similar size!

Another option is to find out the value of your house in 1991 (you can do this using Nationwide’s house price calculator) and check it was placed in the correct band initially (which you can find here).

If you think you have a case get in touch with your local listing officer if in England, or your local assessor if in Scotland.

Find out more in How to slash your council tax bill.

Energy bills

npower announced last month that it will repay over £70 million to customers it overcharged for gas during a pricing mix up back in 2007. So if you were receiving gas from npower between May and November 2007, there’s a good chance you’ll be entitled to a refund.

npower is sending out compensation letters at the moment – if you think you’re entitled to a refund and nothing's dropped through the letter box by December, pick up the phone and give npower a ring.

Be persistent!

Not all these reclaims are straightforward or easy – you’ll need to be persistent and persuasive. So for some further advice take a look at how to complain and actually get your way.

 More: How to complain when things go wrong | How to save when you've got no money