Hi,

I recently discovered a £38 charge on my account for an unpaid cheque due to insufficient funds - the cheque was subsequently re-presented and cleared. I wrote to RBS seeking the return of my money on 25 September and had no reply. I phoned my branch today (10 October) and was told that the bank would return my money providing I signed a letter stating that I would not seek any further refunds for charges on my account. They would send a letter to that effect and would not return my money until I returned it with my signature.

Am I right in thinking that (i) this is inconsistent with the law, as RBS have unlawfully imposed a punitive charge?

(ii) Can an individual indemnify a bank when the law is clear over punitive charges?

Has anyone else received a similar response from RBS?

Andy Mc1

You are right in thinking that you have received an unlawful, punative charge.

Which you can now take action to claim back - follow the procedure.

The bank has sent you a form of words which seeks to draw you in to a contract wherein your right to challenge the legality of their claims and charges is forfeit in the future.

To this you can answer absolutely anything you want as they CANNOT take away your right to challenge their charges at any time, whether you say they can or not.

Thanks for reply.

That was my understanding also. It seems somewhat strange for RBS to tacitly concede that they have no legal right to make punitive charges (they offer to refund the charge), whilst at the same time attempting to coerce me into surrendering my consumer rights in perpetuity (to get the refund - sign a letter indemnifying the bank against my lawful rights) which requires a change in current legislation.

According to staff at the bank, this advice has come from their 'legal team' - who, I presume are aware that the law making body in this country is Parliament not the 'legal team' at RBS!

I could be lazy and just sign their letter and get the charge refunded, but I am more inclined to tell them that the law is clear on the rights of consumers in this instance, and that all I am asking is that they operate their business within the law.

Andy