The Dark Side of Money: Reclaiming Bank Charges
Imagine this scenario. You’ve been paid from work. The money is sat in your bank, account ready to pay your bills at the end of the month. But you have an unexpected payment go out, which leaves you short on your normal bills. The money goes out and leaves you overdrawn, over your agreed overdraft limit.
The bank then penalises you for this, and charges you for being overdrawn.
The result? You end up in even more debt, and potentially having the same thing happening month after month. This could put you in a vicious cycle of debt. But without a bank account, you cannot fully function.
After the PPI scandal broke, this paved the way for a wormhole of other claims to be made; for various charges. One of which being bank charges as well as bank account charges; if it is found you were mis-sold your package bank account. And unlike PPI, where the deadline to claim was back in 2019, there has been no official date to stop these claims. This means, you can still try; although do so with the mindset that nothing is guaranteed, and anything you do win is a bonus!
How Do I Make A Claim?
Depending on what you are claiming for, whether it be bank fees or bank account charges, there are several ways to go about this. You could contact your bank direct, even if your account is no longer open. You can do this by filling in a template letter from the web with all your relevant details. If you If the bank rejects your claim, you could always take it to the FOS (Financial Ombudsman Services); but remember you must address your bank first, and only contact the FOS as a last resort.
If this sounds too confusing or stressful, you could try another route. You could use a CMC (Claims Management Company), who are there to take on your claim from start to finish, including referring the claim to the FOS if required. This takes all the stress out of the process, and as they usually deal with these types of claims in high numbers, tend to have a better success rate. However, they do usually charge a fee; so, check with your individual CMC company to find out before hand, so you know exactly what will be expected.
Bank Charge Reclaim is one such company, who work on a no win, no fee, and state on their site they will ‘help claim back up to 20 years’ worth of unfair bank charges.’.
Martin Lewis, King of Money Saving Expert, has covered this area in length, and has many articles detailing in length on how, when, and where, including templates, how to check if you think you’re eligible, and the best way to start.
Although this may not be the end of your financial troubles, it is a good start; and you may be able to claim back hundreds of pounds that you have paid over the years.
