The steps to take to recover all bank charges applied to your account by HSBC:

Using templates in the Consumer Action Group library will aid you enormously in getting penalty charges refunded - you need to be a registered Consumer Action Group user to access the library and resources.

Step One: The first step in getting unfair bank charges refunded is submitting a DPA request to HSBC. This involves HSBC providing a full transaction history on your account, and specificaly highlighting all instances of when unfair penalty charges have been applied, as well as any evidence of manual intervention in the account in respect of penalty charges.

Step Two: Once your transaction history has arrived (usually in the form of statements) you can calculate the total value of unfair bank charges applied to the account.

Step Three: Send a preliminary request for a refund from HSBC, outlining your belief that unfair penalty charges are unlawful, and that you expect a full refund. This will usually be met with a standard letter of refusal by HSBC, who will maintain that the penalty charges are lawful, fair and transparent.

Step Four: A second letter to HSBC, a letter before action, giving the bank the opportunity to reconsider their position regarding unfair bank charges, and putting them on notice that you will raise a claim in court if the unfair penalty charges are not refunded within fourteen days.

Step Five: Again, HSBC will likely refuse, and therefore you will need to raise a claim. Along with the claim form, requesting a full refund of the penalty charges, you will need to provide a schedule detailing where the unfair penalty charges have been applied. Your claim should also include a request for interest, pursuant to s.69 of the County Courts Act, in respect of unfair bank charges.

Step Six: HSBC will have 14 days to acknowledge the claim, which they usually do. They will then send a letter, indicating that HSBC believes the penalty charges are fair, transparent, and fully defensible in court. Therefore HSBC would not be refunding any unfair bank charges to your account.

However, HSBC will indicate that they are mindful of the management time and costs associated with litigation in respect of unfair penalty charges, and therefore they will be likely to make a payment for the full amount, representing the penalty charges applied, and requesting that the settlement remain confidential.

Step Seven: A final letter, informing them that the offer made is not satisfactory, and that you fully expect the refund of unfair bank charges to be unconditional, and that you will therefore seek to recover the unfair penalty charges in court. At this point HSBC will be very likely to settle for the full amount of penalty charges applied to your account.

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