Bank charges have become part of our everyday life but the simple fact is that they are not legally enforceable. Penalty clauses in legal contracts in England & Wales (and Scotland) for breach of contract are not legal if the penalty exceeds the actual cost of the breach of either party.
It has long been suspected that it does not cost a bank £25 to £35 to return a Direct Debit, Standing Order or cheque. It is purely a revenue generating opportunity, and a lucrative one with estimates that the charges from the top 4 UK high street banks generated £4.5 billion in one year alone. One in five bank customers incur these types of charges, and because it is a bank imposing them, most people assume that the bank must be legally entitled to do so. This is incorrect.
Of course, these charges soon escalate. If you go beyond the overdraft limit, you're then hit with a fine for that and a couple of fines for returned cheques or Direct Debits. Now suddenly you are about £100 in the red, which you cannot afford to repay - next month there are more fines - and so it continues.
The rules are quite clear. Under the 1977 Unfair Terms (contracts) Act, the sheer fact that all banks make these charges makes this a breach of the act.
This is also a breach of the 1999 Consumer Credit Act (Unfair Terms in Consumer Contracts - the Office of Fair Trading (OFT) has already investigated the charges levied by Credit Card Companies) and possibly the Sale of Goods Act, and many others.
This is also a breach of the 1999 Consumer Credit Act (Unfair Terms in Consumer Contracts - the Office of Fair Trading (OFT) has already investigated the charges levied by Credit Card Companies) and possibly the Sale of Goods Act, and many others.
The good news is that with the correct advice and consultation it is possible for the client to reclaim and recover all unfair bank charges and bank fees for the last six years plus interest.
With an expert legal team and extensive experience in dealing with unfair bank charges claims, make PPI Claim Management your first choice.
With an expert legal team and extensive experience in dealing with unfair bank charges claims, make PPI Claim Management your first choice.
Please complete our claim form or call us today on 0844 3580381.
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