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paul

Can someone explain in laymans terms.....

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Hi,

 

Can someone explain in laymans terms exactly how/why you are entitled to any money back??

 

Thanks

 

Paul

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Hi Paul

 

Read around the forum and you will find lots of information. Many of your initial questions may be answered in the FAQs but these are very new and are still under development.

 

Here is a partial explanation:-

 

You have a contract with the bank.

One of the terms is that you agree to conduct your account within the limits set by the bank.

Those limits are that you will not go overdrawn or exceed your overdraft limit.

That you will not issue cheques for money which is not in your account.

Same for direct debits.

You agree that if you do transgress, that the bank will charge you for allowing you a direct debit or for bouncing your DDs etc.

The Babk says that they will decide the charges and let you know from time to time as they increase them.

 

 

However, included in the contract are other terms which are not written and which you have not specifically agreed to.

These terms are called "implied terms". They are implied by the Law. The Bank is obliged by law to give you the benefit of those implied terms.

 

In other words the law is protecting you - the weaker party in a contract with a very large dominant partner. One of the implied terms is that penalty charges may not be more than the actual loss caused by your trangression.

The cost of bouncing a direct debit and sending you a letter is only a few pence. That is the loss suffered by the bank. They are pemitted by law to recoup that loss from you. They are not permitted to make profits out of penalties.

This measn that when the bank charges you £35 they are making a huge profit. The charge is unlawful and the law will permit you to recover the money.

 

The laws which I have referred to are more than 100 years old and they have been strengthened by modern consumer laws passed by Parliament.

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Hi,

 

so can you give me any examples of people who have been successful in this?

 

thanks

 

Paul

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Read through the posts and you will find the stories of people's reactions to their bank charges and the steps which they have taken so far.

 

This is a new forum and so the stories are still developing.

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Hi,

 

right so no one has actually been successful so far? this is a test of the law??

 

Paul

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In response to BankFodders links, they dont seem to be working...have they been moved, or have recent events made them obsolete? I appreciate your'e busy, so no rush! ta very much.

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The links have stopped working because we changed host twice.

The links referred to calis in the litigation section which were successfully concluded.

You can visit this section now and you will see that there are many more concluded now.

I think that there are about 70 cases in progress and about 18 which have been settled.

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This topic was closed on 03/05/19.

If you have a problem which is similar to the issues raised in this topic, then please start a new thread and you will get help and support their.

If you would like to post up some information which is relevant to this particular topic then please flag the issue up to the site team and the thread will be reopened.

- Consumer Action Group

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