RuBanking: Daily Banking News
 
The UK's daily guide to the Banking industry

Home  |   News  |   Blog

Thursday 11th of October 2007
July 26, 2007

Banks threaten customers reclaiming charges

by Gill Montia

Story link: Banks threaten customers reclaiming charges

This is Money, the financial news website, has reported that thousands of people who have complained about unfair bank charges have been threatened with having their accounts closed.

In a clear breach of industry guidelines, some of Britain’s largest banks are reported to be involved in bullying customers who are challenging the level of their default charges.

The survey by This is Money found that over one in eight respondents reclaiming excessive bank fees had been threatened with having their account and overdraft facilities closed.

Many of these customers incurred the unreasonable charges because they were in financial difficulties and the alleged threats breach the Banking Code.

They are also an affront to rulings by the Financial Ombudsman, which state that banks must treat customers fairly when they are in financial difficulty.

In the survey, approximately half of the respondents believed that they were owed over £1,000 in default charges and of those who had lodged complaints, roughly 25% had been successful in reclaiming the full amount.

However, only 17% of successful claimants received their money within a month. A further 17% waited over a year.

According to Credit Suisse, the investment bank, fee reclaiming has cost UK banks £200m this year and it is estimated that the backlash against excessive charges could cost major banking groups 1% of profits, in 2007.

 

 Email This Post  Print This Post

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Banks threaten customers reclaiming charges

Repaid charges could cost HBOS £50m  Credit Suisse has published a study in which it estimates that UK banks paid out £200m in the fir...

FSO waiver leaves bank charge claimants confused  In late July, the Office of Fair Trading (OFT) began the process of bringing a case in the High Cour...

Leading banks seek to recoup charges  The High Street banks may yet turn out to be the victors in their battle with customers reclaiming c...

Moneysupermarket Bank Charge Survey  Moneysupermarket.com, the comparison website, has issued a report highlighting dramatic differences ...

Which? advises consumers on claiming back bank charges  In reaction to a High Court case brought by the Office of Fair Trading, banks have initiated changes...

No Comments »

No comments yet.

Leave a comment


Previous: « Bank of England Governor warns against gradualism
Next: Credit card holders prefer penalty fees »

Visited 98 times, 2 so far today since July 12th 2007

Banking Sectors:

By company:

By organisation:

Also see: