Bank Charges-How far back?

[Gemby]

Hi

 

Can anyone advise me on how far back bank charges can be claimed?

 

What is the theory behind claiming back to 1995?

 

What is the theory behind bank charges now being viewed as a "mistake"?

 

Thanks

[BankFodder]

once the bank charges issue is finally decided, then bank charges as they have historically been charged -- and also are currently being charged will be declared to be unlawful. They will become invalid under the Unfair Terms in Consumer Contracts Regulations. These regulations make it clear that any unfair contract terms are invalid. If they are invalid, then they are no longer contractual. There is no longer any question of being a court action for any kind of contractual issue such as -- breach of contract.

 

The basis then reclaiming money is to say that the money was paid under a mistake. The mistake is that the charges were binding. This is a mutual mistake because the customer believed that the charge was enforceable and (I suppose) that bank believed that the charge was fair and reasonable and that they were lawfully entitled to impose it. (that's what they say anyway).

 

Because you will now have to sue under a mistake, the limitation period changes. It is still six years -- but instead of starting from the date of the breach, it now starts from the date that the mistake could reasonably have been discovered. This date will be from the time that the bank charges issue is fully settled. In other words six years limitation period has not yet even begun to run. If the issue is settled this year, you will be able to keep on claiming all the way up to 2015.

 

The Unfair Terms in Consumer Contracts Regulations give retrospective effect to a European directive which came into force on 1 January 1995. Therefore the regulations apply to all contracts entered into since first of January 1995.

 

Because we are now talking about recovering money paid under a mistake, there is an additional remedy available. You can now claim restitutionary damages. Read around on the forum about restitutionary damages.

[SPROUTY]

once the bank charges issue is finally decided, then bank charges as they have historically been charged -- and also are currently being charged will be declared to be unlawful. They will become invalid under the Unfair Terms in Consumer Contracts Regulations. These regulations make it clear that any unfair contract terms are invalid. If they are invalid, then they are no longer contractual. There is no longer any question of being a court action for any kind of contractual issue such as -- breach of contract.

 

The basis then reclaiming money is to say that the money was paid under a mistake. The mistake is that the charges were binding. This is a mutual mistake because the customer believed that the charge was enforceable and (I suppose) that bank believed that the charge was fair and reasonable and that they were lawfully entitled to impose it. (that's what they say anyway).

 

Because you will now have to sue under a mistake, the limitation period changes. It is still six years -- but instead of starting from the date of the breach, it now starts from the date that the mistake could reasonably have been discovered. This date will be from the time that the bank charges issue is fully settled. In other words six years limitation period has not yet even begun to run. If the issue is settled this year, you will be able to keep on claiming all the way up to 2015.

 

The Unfair Terms in Consumer Contracts Regulations give retrospective effect to a European directive which came into force on 1 January 1995. Therefore the regulations apply to all contracts entered into since first of January 1995.

 

Because we are now talking about recovering money paid under a mistake, there is an additional remedy available. You can now claim restitutionary damages. Read around on the forum about restitutionary damages.

 

Could the Banks argue that It became obviouse to Jo Public- "the man on the Clapham omnibus" that charges were unfair on the publication of OFT investigation into Credit Card Charges (Feb 2006) or might that only apply to Credit Cards?