One Fool writes about his progress in his claim for unlawful bank charges, and explains his next steps.
In just over six months, the Consumer Action Group has acquired almost 40,000 users. Of these, 1,000 have already reported that they've recovered more than £1m in unlawful penalty charges from banks. Many others who haven't completed the Consumer Action Group's survey have recovered money too.
I started my own claim some weeks ago and I've now received a response from the bank. It is as expected: they have denied that the charges are unlawful. They also wrote that if I pursue this they may have to consider closing my facilities, such as overdrafts, debit cards and cheque books. This is also typical, as I explained in an earlier article on tactics for reclaiming. Their blatant bullying tactics are of no concern to me, as I switched bank accounts last year to get much better interest rates. (You too can compare current accounts and switch through The Fool.)
Stage one of my claim was to work out what they owed me. Stage two was to write to them demanding my money back. I'm now at stage three, which is to send what's often called a 'Letter Before Action'. In my original article, I said that I might threaten them by sending a copy of a draft 'particulars of claim' (a court document formally setting out the reasons for claiming, plus the amount of the claim including legal costs), but, as thousands of people have been successful without this measure, I've decided not to. Instead, I shall write my letter as follows:
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Dear Sir/Madam
Account no: xxxxxxxx
I am disappointed that you have not agreed to refund the charges on my account in relation to direct debit refusals, exceeding overdraft limits and so forth, despite the fact that they are unlawful at common law, under statute and under recent consumer regulations.
I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law. I am frankly shocked that you have operated my account in this way.
I calculate that you have taken £xxxx plus £xxxx which you have charged me in overdraft interest for the sum which you have taken. Total £xxxx.
I am enclosing a copy of the schedule of the charges which I am claiming.
(If your credit record has been affected by unlawful charges, you may want to add the text in italics - but remember to de-italicise it!)
Additionally you have entered a default notice against my credit record. This default occurred merely in respect of unlawful charges levied by you or was the result of impecuniosity caused directly by the taking by you of penalty charges which you had applied unlawfully to my account.
In addition to full payment of the sum mentioned above I require that you remove the default entry from the register. Please note that mere correction or amendment to the entry will not be acceptable.
I require repayment in full of this money and removal of the default notice. If you do not comply fully within 14 days then I shall begin a claim against you for the full amount plus interest plus a claim under ss.7 and 13 of the Data Protection Act 1998 plus my costs and without further notice.
Yours faithfully
Xxxx
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I modified this from a template letter found on the Consumer Action Group's website. My schedule of charges will be a separate sheet of paper, headed 'Schedule of Charges'. On it I shall write a list of each charge and the date of it, plus the interest. At the bottom I shall put the total.
Now, this is where it gets time critical. If they don't respond by agreeing a full refund within the period I've specified, I must begin court proceedings as soon as possible. I shall explain how to do this later. I suggest that, when you send your own Letter Before Action, you take the time to learn more about the court process.
> ReadThe Ultimate Guide To Reclaiming Bank And Card Charges.